Ethena falls over 10% as Binance breach-linked hacker offloads ENA tokens

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Ethena drops 10.34% today after hack

Highlights

ENA token price dropped after a hacker associated with the Binance breach sold 217.5 million tokens valued at $33.93 million.
USDe stablecoin collateral remains secure with off-exchange custodians, total ecosystem rewards have exceeded $800 million, and future ENA incentives are scheduled to end on September 30, 2026.
ENA/USD trades below key moving averages with technical indicators broadly bearish, projecting a 75% chance of downside to the $0.1641 to $0.2089 range over five days.

Collateral security reassurances amid forced token sales and protocol updates

Ethena experienced significant price declines on October 30 after a hacker linked to the Binance breach sold about 217.5 million ENA tokens worth $33.93 million. Ethena confirmed that all USDe stablecoin collateral remains with off-exchange custodians and that there were no backing funds on Binance as of October 30, with key minting and redemption processes functioning normally. The company reported total rewards paid under the USDe ecosystem have surpassed $800 million and that ENA token incentives for USDe stakers will end on September 30, 2026, with future buybacks planned after USDe supply reaches $7.5 billion following a governance-approved fee-switch. Ethena also launched the Earn+ vault on October 28, and an unlock of about 93.75 million ENA tokens valued at $18.37 million is scheduled for November 5.

Anton Kharitonov, expert at Traders Union, points out that ENA suffered a sharp drop following the hacker’s mass selloff, amplifying ongoing bearish momentum. He observes that ENA/USD trading below its 20- and 50-day moving averages is a clear technical confirmation of sustained selling pressure. Kharitonov notes that although long-term support holds, all momentum indicators now reflect a fragile buyer presence and dominance by sellers. He warns that imminent token unlocks and reduced staker incentives further deteriorate confidence around the asset’s near-term prospects. "Persistent selling, ongoing security concerns, and recent token unlocks leave ENA highly vulnerable to further declines," he states.

Viktoras Karapetjanc, expert at Traders Union, focuses on the strength of Ethena’s core fundamentals despite the recent selloff. He notes that ENA’s long-term bullish structure remains intact above the MA-200, with robust total ecosystem rewards and upcoming governance actions providing upside potential. Karapetjanc highlights that the project’s operational resilience, including safeguarding USDe collateral and expanding with products like Earn+, supports constructive sentiment. He expects that future buybacks and the end of staker incentives in 2026 may attract renewed institutional interest. "With buybacks ahead and stable fundamentals, I see further growth potential for ENA once the present volatility subsides," he says.

Sholanke Dele, market strategist, sees investor sentiment turning sharply negative after the hacker’s token sale. He emphasizes that the market remains cautious despite some neutral long-term indicators and notes little evidence of renewed buyer confidence. Dele points out that risk events, including additional scheduled token unlocks, could trigger more selloffs and worsen sentiment further. "In the current environment, I would remain defensive as negative sentiment is likely to dominate over the next several sessions," he warns.

Persistent short-term selling as bullish long-term structure faces momentum loss

ENA/USD trades below both the 20-day and 50-day moving averages (MA-20 at $0.2041, MA-50 at $0.2071), but remains above the longer-term MA-200 at $0.1284. This structure indicates short- and medium-term pressure from sellers, yet a bullish long-term trend persists, with the nearest resistance seen at $0.1915 and support at $0.1732. Momentum signals show weakness: the Moving Average Convergence Divergence (MACD) signals a strong sell and the Average Directional Index (ADX) points to a neutral trend. The Relative Strength Index (RSI) sits near 50 and forecasts a sell, and the Stochastic RSI is elevated and strongly bearish, hinting at overbought exhaustion. Bull/Bear Power (BBP) is just positive at 0.0126, indicating buyers retain marginal dominance intraday. The Commodity Channel Index (CCI) and Awesome Oscillator (AO) remain neutral. Sellers have pressured the pair after the open, and momentum indicators broadly confirm this tone, although BBP and CCI reflect some residual buyer interest.

Earlier, analysts noted that Ethena was facing persistent downside risk amid mixed short-term signals and mounting technical pressure. The current selloff driven by post-hack token liquidations reinforces this bearish outlook, and traders should closely monitor price action around the $0.1732 support for any sign of renewed selling momentum.

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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