Ethena tests $0.1201 resistance as USDC↔USDe conversion fees are lifted

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Ethena jumps 7.23% today to $0.0848

Highlights

Ethena has removed conversion fees for whitelisted users, making USDC to USDe transactions free and lowering capital cycling costs.
This fee elimination is designed to boost liquidity, encourage increased usage, and support heightened platform activity and inflows.
ENA/USD trades up 7.23% intraday with short- and medium-term bullish momentum; expected range is $0.0803 to $0.0875, with high probability of further upward movement.

Fee removals spark buying as capital efficiency lifts platform activity

Ethena has eliminated mint and redeem fees for whitelisted users, making USDC to USDe conversions free and enabling cost-free looping strategies on Coinbase and Robinhood Morpho vaults, according to News Todayindefi. This fee removal reduces transaction costs for key users, encourages higher platform activity, and boosts protocol liquidity as capital can be cycled with fewer barriers. The enhanced utility and improved capital efficiency have helped drive renewed buying interest and support today's upward price action.

Bullish signals persist but volatility rises on mixed momentum readings

On the technical front, ENA is trading above its 20-period ($0.0803) and 50-period ($0.0802) moving averages, while remaining below the 200-period level at $0.1201. The Ichimoku Kijun acts as immediate support at $0.0809. Momentum indicators present a mixed picture: the Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) are both on buy signals, while Commodity Channel Index (CCI) is in overbought territory and the Relative Strength Index (RSI) reads 64.2, also within bullish territory. However, the Stochastic RSI issues a strong sell signal. Bull/Bear Power suggests intraday buyer dominance, and the Awesome Oscillator reinforces the prevailing bullish tone. Price is holding near the day's high, suggesting strong volatility amid conflicting oscillator signals.

Sideways consolidation likely as resistance and support tensions build

Over the next two to three trading days, ENA is expected to consolidate within a range of $0.0803 to $0.0875, reflecting a typical volatility band relative to current levels. The baseline scenario envisions sideways movement inside this range. Should bullish momentum continue and resistance be tested, a break above could drive price toward the upper end of the band. Conversely, a decisive move below support at the Ichimoku Kijun ($0.0809) would open the way for a deeper correction, though this is currently viewed as very unlikely.

Viktoras Karapetjanc, analyst at Traders Union, sees Ethena’s latest fee removals as a fundamental driver of today’s momentum. The platform’s move to eliminate transaction costs for select users directly boosts protocol utility and draws in active capital. Karapetjanc notes that technicals are broadly supportive, with indicators pointing to robust short-term demand, though some caution remains due to mixed oscillators. He believes the current setup favors ongoing strength within the projected range. "Ethena’s ability to enhance user incentives at this stage gives me confidence that bullish momentum can sustain above $0.0803 in the coming days."

Earlier, analysts noted that Ethena was displaying near-term buyer dominance, supported by robust technical momentum and ecosystem engagement. The current removal of transaction fees for key users bolsters this positive outlook by encouraging increased participation and liquidity, making the durability of intraday bullish momentum a key theme to monitor as volatility persists.

Source of Data: ENA Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.