Ethena falls around 10.5% as sellers dominate below key moving averages

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Ethena slips 10.60% today on news

Highlights

Ethena announced a partnership with Hyperliquid to build HyENA, a decentralized perpetuals platform using USDe as sole collateral.
USDe stablecoin availability was expanded to X Layer and OKX Wallet, and ENA market capitalization stands at $2.76 billion.
ENA/USD trades below key short-term moving averages with mixed momentum signals, projected to move between $0.1624 and $0.2157 over five days.

Liquidity events pressure ENA despite ecosystem expansion efforts

Ethena announced a partnership with Hyperliquid to develop HyENA, a decentralized perpetual contracts trading platform using USDe as the sole collateral, aiming to enhance utility and ecosystem growth. USDe stablecoin availability was expanded to X Layer and OKX Wallet to broaden the user base. The market capitalization of ENA was reported at approximately $2.76 billion, with $530,000 in long liquidations across major exchanges, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, finds Ethena under severe technical and sentiment-based pressure. He notes the token trading below both 20-day and 50-day moving averages, with persistent selling and a recent 10% drop despite expansion news. Kharitonov points out the risk that continued liquidations and failed bullish breakouts could push price further toward support at $0.1874 or even $0.1624. He warns the partnership news failed to boost sentiment, revealing a lack of investor confidence. "Until ENA can reclaim key technical levels, I see heightened downside risk prevailing within the current volatility band," he comments.

Viktoras Karapetjanc, expert at Traders Union, sees the recent upgrades and ecosystem partnerships as strong positives for Ethena. He believes expanding USDe’s reach and the HyENA platform add valuable utility, supporting further network growth. The bullish long-term trend remains intact above the 200-day average, with multiple opportunities if resistance at $0.2014 is broken. "With the bullish structure holding and new developments on track, I expect further growth potential for ENA in the upcoming sessions," Karapetjanc states.

Sholanke Dele, market strategist, points to lingering caution despite fresh news and the expanded partnership. He sees market reaction as subdued, with liquidations signaling buyers remain exposed to volatility. Dele warns that high probabilities for both directions mean sentiment is fragile. "Cautious trading is warranted here — the risk of further losses cannot be overlooked," he concludes.

Seller momentum persists amid mixed technical signals and firm support

ENA/USD trades below both the 20-day and 50-day moving averages (MA-20 at $0.2117 and MA-50 at $0.2023), indicating ongoing short- to medium-term pressure from sellers. The price remains above the 200-day moving average (MA-200 at $0.125), confirming a bullish long-term trend, with the Ichimoku Kijun at $0.2278 acting as more distant resistance. Immediate support is identified at $0.1874 and resistance at $0.2014 for the current session. Momentum indicators show a mixed picture: the MACD issues a sell signal, while the ADX and Hull Moving Average both show buying strength. RSI is neutral just above 50, Stochastic RSI leans bullish, CCI is neutral, and Bull/Bear Power (BBP) at 0.0087 signals buyers still dominate intraday momentum, with a 'Strong Buy' forecast.

Earlier, analysts noted that Ethena faced intensified selling pressure as technical signals shifted to a bearish outlook. The current article adds new developments around the Hyperliquid partnership and USDe’s expanded integration, with traders advised to monitor the $0.2014 resistance and $0.1874 support as pivotal levels for confirming the next directional move.

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

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