Ethena Crypto Approaching Previous Support Levels As Prices Recover

Ethena crypto just broke out of a Parallel Channel pattern as the prices now seem to recover.

This breakout though has placed this token in a very delicate position as the token is about to test a critical support level of $0.86.

If we fail to take back this support, it could lead to a sharp price correction, which could target $0.69 and $0.57.

These levels are the lower bounds of the previous consolidation range in the asset and could be turning to accumulation levels if the market begins correcting.

The fact that the breakout itself is a technical event is an important one as parallel channels often indicate consolidation before a decisive move.

This breakout for Ethena could be a signal that its market structure is changing.

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While the token tried to break the downtrend, its ability to keep momentum to stay above critical support zones is a mystery.

Ethena Crypto Pumps Over 1% in the Last 24 Hours

Even with the specter of a possible correction hanging over their heads, Ethena still managed to record an over 1o% profit in the last 24 hours.

The token’s price, however, has jumped to $0.91 per token, rebounding from a drop during which it went as low as $0.82, CoinMarketCap reported.

The recovery is indicative of new buying pressure, especially as the token gains popularity in speculatory traders.

Ethena’s trading volume has increased massively, having climbed to over $675 million in the last 24 hours, that’s a 51.95% rise from today’s session.

Volume spikes like this one suggest the market is pressuring higher, as traders anticipate additional upside or plan to get out on short-term price moves.

However, Ethena’s market cap has also increased, standing at a healthy $2.74 billion and making it one of the most popular digital assets right now.

But these gains have arrived against the backdrop of uncertainty. Despite climbing up from $0.35, bulls have been wary as it failed to decisively break away above $0.95, a key resistance level marked by the EMA 100.

Traders are divided on whether the latest pump represents the beginning of a sustained rally or is a case of ‘relief bounce’ within a general downtrend and the token’s short–term outlook remains ambiguous.

Technical Analysis: Ethena’s Key Levels

Looking at technical indicators, we see that Ethena crypto looks a bit mixed as well, taking a closer look at some of their key technical indicators.

At the time of writing, the token is now trading close to the EMA 50 level and EMA 100 level, sitting at $0.9 and $0.95 on the 4-hour chart.

These moving averages are useful to examine the momentum of a token because usually, they serve as dynamic support and resistance levels.

Considering that Ethena hasn’t won back the EMA 100 in a definitive manner yet, it’s possible that its momentum is encountering some pushback.

Ethena has an RSI of 55.46, in neutral territory. Given that this opens the door for additional gains, though, it also indicates that there was no powerful bullish power.

A rise above 60 could indicate a beginning uptrend. A fall below 50 could indicate a bearish reversal.

The neutral RSI reading matches up with the recent (and recent only) price action of the token, attributed to short-term volatility, and indecision.

Most important, from that point going forward, remains the $0.86 support level. If Ethena crypto can’t hold this level it may open up the possibility of deeper correction.

Previous consolidation areas lie at $0.69 and $0.57, notably the next significant support zones.

On the plus side, a gain above $0.95 could see a run back to around $1.00, and perhaps beyond.