Shift in ENA Supply to Single Address: Consequences and Implications
Ethena (ENA), the cryptocurrency that has been making waves in the digital asset market, is currently experiencing a surge in popularity and momentum. In the first quarter of 2025, ENA's earnings were seven times worse compared to the 2024 earnings, only surpassing $1M. However, this dip seems to have been overshadowed by the strong upward movement that followed.
The daily trading volume of Ethena has surged over 45%, indicating increased investor interest. This surge coincides with Ethena's price retesting the breakout level, as per the latest analysis. According to Ali Charts on X, Ethena is in the middle of a retest at the $0.43 level, which also coincides with the 0.618 Fibonacci Retracement level.
The price chart of Ethena has been rising since the potential end of crypto bear markets in early April. Ethena rejected the $0.25 level more than five times, with the range's top standing at $0.45. This rejection suggests a strong bullish sentiment among investors.
Technical indicators also support this bullish outlook. ENA has experienced a price surge above key EMA resistance levels—specifically its 50-day and 200-day EMAs—which is considered a strong technical breakout and indicates a shift into a bullish market zone. The RSI is high at 72.24, signifying strong buying momentum but also suggesting the potential for short-term consolidation or minor retracements. The MACD indicator is positive, with the signal line crossing above zero, confirming the bullish trend reversal.
Significant whale accumulation has been observed, with over 1.07 billion ENA tokens transferred to private wallets. This large-scale buying augments investor confidence in Ethena’s ecosystem. Substantial $2 billion inflows into Ethena’s stablecoin product USDe and a 10% APY staking incentive have further attracted investor interest, particularly amid a low-yield economic environment.
However, some technical analysts caution that ENA’s recent upward move might be an A-B-C corrective rally within a longer-term bearish trend. The token completed a five-wave downward movement since December 2024, suggesting potential for renewed lows after the correction phase. Next resistance targets lie between approximately $0.78 and $0.91, a zone defined by Fibonacci retracement levels, where the market reaction will be crucial for determining the trend’s continuation or reversal.
Despite these cautions, one price projection expects a near-term price drop to around $0.37 by July 29, 2025, a 23.89% decline from current levels. However, the overall bullish sentiment and the asset being currently 31.61% above that forecast suggests that the market may not follow this prediction.
Market sentiment remains generally bullish, supported by a Fear & Greed Index reading of 71 (Greed), reflecting strong investor optimism. With the current sentiment in the crypto markets, despite a spike in liquidations in the last 24 hours, Ethena could rally higher, potentially reaching $0.70. However, there is also a possibility that ENA could break back into the range, and the length of time it stays there could define its trajectory. If prices overstay, the structure could be written off.
In summary, Ethena (ENA) exhibits strong short-to-medium-term bullish momentum driven by technical breakouts, whale accumulation, and growing investor trust, with upside potential toward the $0.78-$0.91 resistance range. However, the presence of a corrective pattern in the longer-term wave count and some forecasts of a short-term pullback urge caution. The trading reaction at the upper resistance zone and broader market trends will be decisive for ENA’s further price trajectory.
Thus, ENA's future potential appears promising but nuanced, with bullish retest and whale activity underpinning growth amid a still-evolving trend structure and mixed short-term predictions.
[Sources] 1. Ali Charts on X 2. CoinMarketCap 3. DefiLlama (for Ethena's income statement)
- The crypto market has witnessed a surge of interest in Eth (Ethena) due to its recent bullish momentum, with its daily trading volume escalating over 45%.
- The price chart of Eth has been on an upward trajectory since the potential end of the crypto bear markets in early April, as it rejects the $0.25 level multiple times and retests breakout levels.
- Technical indicators such as the RSI and MACD support this bullish outlook, indicating strong buying momentum and a bullish trend reversal, respectively.
- The Defi sector has also attracted investor attention, with substantial inflows into Eth's stablecoin product USDe and a high 10% APY staking incentive, contributing to Eth's growing popularity. However, some analysts caution that Eth's recent upward move might be a corrective rally within a longer-term bearish trend.
