-7.05% for Ethena — leveraged DeFi risks spur selling

Traders Union
All News
Crypto
Ethena slides 7.05% today on weakness

Highlights

Ethena (ENA) trades at $0.4589, below its MA-50 ($0.5635) and MA-200 ($0.4684), indicating ongoing medium- and long-term selling pressure.
A recent bullish engulfing pattern and a $3.3 billion market cap align with broad crypto rebound optimism from anticipated Fed rate cuts, but October 10's Bitcoin crash threatens $1 billion in staked sUSDe DeFi loop trades tied to ENA.
Technical indicators remain mixed, with short-term sideways price action expected in the $0.4384–$0.4636 range and less than a 20% probability of upside over the next five days.

Bullish reversal signals amid market rebound and DeFi strategy risks

Recent technicals confirm a bullish engulfing pattern after a brief correction and indicate a market capitalization of about $3.3 billion for the token. This development comes as the broader crypto market rebounds, partly fueled by expectations of a 25-basis-point Fed rate cut, which broadly advantages risk assets. However, uncertainty persists due to the impact of the October 10 Bitcoin crash, which put almost $1 billion in staked sUSDe DeFi loop trades at risk, affecting leveraged yield strategies tied to ENA.

Mixed momentum with support at Kijun and sellers dominating intraday

Technically, ENA finds dynamic support at the Ichimoku Kijun ($0.3817) and immediate resistance at the MA-50 ($0.5635). Momentum indicators present a mixed view: the D1 MACD signals strong bearish momentum, the ADX highlights a robust trend, while RSI trends neutral-to-positive. Stoch RSI and CCI are neutral, with no extreme readings, BBP is slightly negative, and the Awesome Oscillator confirms short-term bearishness. The current price is near the daily low of $0.4513–$0.466, and intraday volatility remains moderate to high, with a bias towards selling after the open.

Low upside odds as narrow range and downside risks persist

In the short term, ENA is likely to fluctuate within the $0.4384 to $0.4636 range over the next five trading days. The probability of a price increase is very low (below 20%), favoring further declines. The baseline scenario projects sideways movement in a narrow band, while a bullish scenario would require a decisive close above $0.4636 to shift momentum. Conversely, a drop below $0.4384 could trigger stronger downside pressure toward lower support levels.

Anton Kharitonov, expert at Traders Union, views ENA’s technical setup as fragile in the current environment, with short-term support just above $0.45 but sustained downside pressure from key moving averages and momentum indicators. He notes that, while a rebound in the broader crypto market and expectations of Fed rate cuts may provide some relief, ongoing fallout from the Bitcoin crash and risks to leveraged DeFi trades continue to weigh on sentiment. Tactically, Kharitonov believes ENA is likely to trade sideways within a narrow band, and a convincing move above $0.4636 is needed to even consider an upside scenario. "Until we see a decisive break above $0.4636, I remain cautious — base case is further consolidation or controlled declines."

Previously it was noted that momentum signals for ENA were mixed, with some indicators pointing to further downside. The article discussed how persistent selling pressure in the market was confirmed amid oscillator divergence.

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.