Hayes Offloads Ethena Crypto as Prices Tumble, Will ENA See Reversal?

Co-founder and former CEO of BitMEX Arthur Hayes recently deposited 7,850,000 Ethena (ENA) crypto to $6,460,000 from his Binance and Bybit accounts, sparking speculation that he was selling.

Onchain analytics of the move have pushed the price of ENA down more than 10% in the last 24 hours. As the market falters, investors continue to fret that this will start a deeper downturn or a return to growth.

Ethena Price Slump: A Closer Look

In the last hours, Ethena crypto price has sharply declined and is now trading at $0.7779 at the time of writing. The token is still far from breaking free of key support areas, representing a steep decline from its previous levels.

The token has remained under significant selling pressure, and its price dropped 13.61% in the past day. This also conforms to broader market concerns and the increased activity of whales like Hayes.

A stark picture emerges on the four-hour price chart for Ethena. The token has been trapped within a descending channel, highlighted by lower highs and lower lows. This pattern suggests sustained bearish momentum, as the token cannot find a floor.

Furthermore, what was once a stronghold has since changed and returned to provide resistance at the $0.80 psychological support while exposing the token to alternative downside risks.

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The Money Flow Index (MFI), a sign of buying and selling pressure, now stands at 27.42 as it approaches oversold conditions. Any relief rally won’t last long without a significant influx of buyers.

Ethena Crypto Market Dynamics: The Bigger Picture

This price action comes in the middle of a wave of trading activity. Turning to Ethena’s 24-hour trading volume, it rose by 57.75% to $523.77 million.

The volume here is very obviously spiking toward the red, suggesting that the market is under severe pressure to sell. Hayes’s deposit to centralized exchanges was very large, for sure. Price declines usually trigger panic among retail investors, fueling the fire.

Ethena crypto has an impressive market capitalization of $2.35 billion, which makes it a major player in decentralized finance (DeFi). With $5.86 billion total value locked (TVL), it is firmly part of the ecosystem.

Yet the market cap to TVL ratio of 0.405 raises questions about the potential undervaluation of the market yesterday, given that the price dropped and investors started doubting the sustainability of the cost with where the price currently stands.

Most certainly, Arthur Hayes’s recent deposit of 7.85m ENA helped to stoke the flames. It isn’t the first time Hayes has tried his hand in similar transactions, including depositing millions of dollars in exchanges, followed by significant price losses. Such patterns have made him a key trader to watch for those speculating market moves.