Ethena (ENA) hit a local high of $0.12 on Wednesday, March 4. A report from AMBCrypto had detailed the rapid price surge and corresponding increase in open interest that signaled a short-term bullish trend.
The high trading volume on that day was also noted, but the long-term bearish structure can be expected to prevail. Over the past 48 hours, sellers have also regained control of the market.
At the time of writing, the ENA was 15% below the local high water level of $0.12. Based on the available evidence, it would appear that a deeper withdrawal is likely.
Ethena buyers can’t catch a break!
Source: ENA/USDT on TradingView
The respite buyers have enjoyed over the past 8 months has only lasted a week or two at best. Since reaching around $0.8, Ethena prices have been declining since August. They fell below the $0.21 support in mid-January. At press time, the price was just above $0.1.
This represented a 50% drop in five weeks. This was a warning to altcoin investors: losing important support levels can lead to rapid losses.
The Directional Movement Index has shown a strong downward trend on the weekly chart since October. MFI is falling, with A/D also hitting new lows. Together, they highlighted the absolute control the bears have enjoyed in recent months.
What future for ENA traders?
Source: ENA/USDT on TradingView
A bullish divergence with the momentum indicator led to a price rebound to $0.12. The aforementioned report had highlighted the long-term trend and the liquidation cluster at $0.12 as a short-term price magnet.
Fibonacci levels showed that the 78.6% level at $0.123 was untested before the rejection. This may be another sign that the sellers were in control and the market was firmly bearish. The technical indicators on this time frame also agreed.
The next target for ENA is the $0.085 southward extension level.
Final summary
- Ethena’s long-term price action was bearish, and the short-term rebound reached its target and was rejected.
- A fall below $0.1 could be imminent, with a 7-15% drop also likely over the next week.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
