Ethena set for 6% correction – Why do whales keep buying?

Key Takeaways

On-chain metrics hint at a short-term bearish trend as bets on short positions skyrocket. ENA’s price action points to a potential 6% downside rally in the coming days.

Following an impressive 21% recovery after Powell’s speech, Ethena [ENA] appeared to be entering correction mode.

The daily chart looks weak; however, crypto whales and long-term holders have been persistently showing interest in the asset.

Crypto whales add 32 million ENA, time to buy?

Recently, a prominent crypto expert shared Santiment data showing that whales holding 1 million to 10 million tokens purchased 32 million ENA over the past 24 hours.

Source: X (Formerly Twitter)

Meanwhile, another on-chain analytics platform, CoinGlass, revealed that over $24 million worth of ENA left exchanges in the past 48 hours, hinting at ongoing accumulation.

Source: Coinglass

These notable purchases by whales and long-term holders raise questions about whether this is an ideal time to add ENA. Additionally, they hint at potential upside momentum in the coming days.

Another bullish factor strengthening the ENA outlook is the ETH/BTC four-hour chart, which is currently in an uptrend.

This indicated capital rotation from Bitcoin [BTC] into Ethereum [ETH], which is usually a sign of an altseason.

Based on historical performance, if this trend continues, ENA could benefit and the market may see a spike in its price.

Ethena price action and technical analysis 

ENA’s price slipped 5.35% over the past 24 hours, standing at the $0.70 level at press time.

Overall participation fell notably during this same period, as CoinMarketCap data reveals that ENA’s 24-hour trading volume plunged 75% compared to the previous day.

AMBCrypto’s technical analysis revealed that ENA’s four-hour chart appeared to be weakening and was poised for a price dip.

This speculation stemmed from the breakdown of a small consolidation following the recent rally and the formation of consecutive large red candles.

Source: TradingView

Currently, the chart seems to be heading toward the next support, which may reach by falling another 6% in the coming days.

Since July 2025, ENA has been consistently supported by an ascending trendline, and the recent rally also began from there. This time, there is a high probability that the asset may retest that support before its next leg up.

At present, the Supertrend indicator remains in green and hovers below the ENA price. This suggests that the asset is still in an uptrend and buyers continue to show interest.

Potential correction ahead

Over the past 24 hours, traders appear to be following the same trend, as bets on short positions are skyrocketing.

CoinGlass data reveals that ENA’s major liquidation levels are at $0.689 on the lower side and $0.728 on the upper side.

These levels are also where traders are over-leveraged, having built over $6.91 million worth of long positions and $11.94 million worth of short positions.

Source: CoinGlass

Combining this on-chain data with ENA’s price action, it appears that the short-term market trend is bearish, while the higher time frame sentiment remained bullish.