Ethereum Name Service (ENS) has experienced significant gains, with the token's price reaching levels that suggest it may be overbought. In the past 24 hours, ENS has surged by 15.62%, bringing its trading price to $26.7. This marks the second time this month that ENS has surpassed the $26 mark, a level last seen in January 2022. Despite this impressive rally, ENS remains 69% below its all-time high of $85.69, achieved in November 2021.

The recent price surge has propelled ENS’s total market capitalization to $840 million, positioning it as the 82nd largest cryptocurrency by market cap. The asset's daily trading volume has also seen a notable increase of 39%, reaching $227 million.

Data from Santiment indicates a 27% rise in ENS’s total open interest over the past day, climbing from $60.32 million to $76.45 million. This spike in open interest typically leads to higher price volatility due to increased liquidations. Furthermore, the total funding rate for ENS has decreased from 0.009% to 0.006% over the same period, suggesting that the rise in open interest is largely driven by an increase in short positions — traders betting on a price decline for ENS.

Santiment’s analysis shows that the ENS relative strength index (RSI) is currently at 61, indicating that the asset is slightly overbought. This overbought condition raises concerns about potential price manipulation by large market participants, commonly referred to as "whales." For ENS to maintain its bullish momentum, its RSI would need to cool down below the 50 mark, which would signal a healthier, more sustainable growth pattern.

The current market dynamics highlight the potential for increased volatility in the near term, as traders and investors closely monitor ENS's performance and broader market trends. The cryptocurrency community will be watching to see if ENS can sustain its upward trajectory or if it will face a correction due to its overbought status.