Ethena (ENA) at $0.207: Can It Hold? Analysts Warn of 5-7% Drop
Ethena's support level faces a brutal test.
The Critical Line in the Sand
All eyes are on the $0.207 mark for ENA. Market analysts are flashing warning signs, predicting a potential breakdown that could slice another 5% to 7% off its value. This isn't a minor dip—it's a crucial technical battle that will define the token's near-term trajectory. The charts are whispering, and the message isn't optimistic.
Pressure Mounts in a Nervous Market
The broader crypto sentiment isn't helping. When fear grips the market, even solid projects get punished alongside the memecoins—a classic case of the good getting thrown out with the speculative bathwater. Traders are watching for a decisive close below that key level, which could trigger a wave of automated sell-offs and sentiment-driven capitulation.
Beyond the Technicals
While the numbers paint a bearish short-term picture, remember that crypto moves in cycles of panic and greed. A successful hold here could set the stage for a powerful reversal, turning this support into a springboard. But for now, the momentum favors the sellers. It's a stark reminder that in this game, sometimes the most sophisticated analysis just confirms you're on the wrong side of a market that thrives on proving experts wrong—usually at the most expensive moment.
Ethena Bearish Continuation Triggered Below $0.2062
Analyst Umair crypto highlighted that ENA continues to trade in bearish flag targets on the daily chart. He pointed out that price action still closely adheres to the trajectory. The deficiency in the deviation maintains the bearish setup.
Similar pressure is seen in shorter periods. Analysts found a new bearish flag formation on the four-hour chart. Momentum has become central in the determination of direction. The relative strength index trendline is the key indicator that Umair Crypto identified.
Further weakness could be validated by a broken RSI support. The analyst further stated that a four-hour candle below the 50 simple moving average of $0.2073 WOULD give a better argument on the bearish side. A close below $0.2062 would be an obvious signal of continuation.
Source: X
With the arrangement validated, ENA may encounter a pullback of 5% to 7%. The downside targets are within a range of $0.195 to $0.192. This is the second area of interest for short sellers in case of momentum loss. Traders are also monitoring $0.2018 in case of any downward trend. An increase in volume there could be an indication of a local reversal attempt.
Crypto Coral, another analyst, mentioned that ENA remains in an upwards trendline. The building exhibits great lows as they develop. This implies that buyers are active around support areas.
A trendline bounce can bring the price to a major resistance zone higher than the current price. If the buying strength establishes itself, such a situation would test the bearish outlook. Until then, the price is able to hold above the four-hour 50 SMA, which continues to put pressure on.
Source: X
ENA Open Interest Rises 2%, Signaling New Positions
According to CoinGlass data, ENA trading volume has increased by 87.50% to $483.71 million. Open interest increased 2.04% to $305.89 million, which indicated new positions in the market. The Ethena OI-weighted funding rate stood at 0.0032%.
Source: CoinGlass
The liquidation data is moderate. Total liquidations stood at $499.16K over the last 24 hours. The long liquidations amounted to $358.04K, and the short liquidations amounted to $141.12K. The figures indicate active positioning as traders await the next MOVE of Ethena.
Source: CoinGlass
