Ethena faces downside risk as TD Sequential points to potential drop to $0.36 in coming days.
Ethena (ENA) is currently under technical scrutiny as indicators suggest the possibility of a short-term price decline. Traders and investors are watching market signals carefully, especially following recent price fluctuations. ENA’s recent movements reflect a combination of technical pressure and ongoing investor interest.
TD Sequential Signals Point to Potential Pullback
Technical analysis shows that Ethena may face downward pressure in the coming days. Ali Charts noted that with the TD Sequential flashing a sell signal, a rejection here could send Ethena $ENA back to $0.35. This pattern often indicates that the market might experience a temporary reversal or price correction.
ENA/TetherUS | Source: Ali_Charts/X
Currently, ENA is trading around $0.474, holding above key support levels at $0.452, $0.421, and $0.394. Despite this, the majority of short-term indicators favor a bearish outlook. Analysts are noting that traders should closely monitor how the token reacts around these supports. A break below the nearest support could prompt further decline toward lower price levels.
Market sentiment, as measured by the Fear & Greed index, stands at 29, reflecting cautious trading conditions. A low reading suggests that investors may be hesitant, potentially signaling short-term selling pressure even as longer-term prospects remain stable.
Recent Market Trends and ENA Price Movement
Ethena has shown mixed performance over different timeframes. Over the past month, ENA has lost around 28.57%, while its one-year price change shows a 21.25% gain. The token recorded an all-time high of $1.52 on April 11, 2024, and remains volatile within its current trading range.
Moving averages provide a nuanced view of market conditions. While short-term averages, such as the 3-day and 5-day SMAs, suggest a sell signal, longer-term averages like the 50-day and 200-day SMAs point to bullish trends. This combination indicates potential short-term weakness but longer-term stability, emphasizing the need for cautious trading.
Resistance levels at $0.510, $0.537, and $0.569 could limit upward movement if ENA attempts to recover. Technical oscillators such as the RSI (14) are currently neutral at 44.7, indicating no extreme overbought or oversold conditions.
Investor Activity and Ecosystem Developments
Ethena’s co-founder, Guy Young, recently purchased over $20 million worth of ENA tokens, attracting market attention. While this demonstrates confidence in the long-term potential of the asset, it does not eliminate the possibility of short-term technical declines.
The project includes the USDe synthetic dollar, which uses a delta-neutral strategy involving staked Ethereum paired with short futures. This design allows the token to maintain stability on-chain while generating yield efficiently. Binance co-founder Changpeng “CZ” Zhou’s YZi Labs has also invested in the project, highlighting growing institutional support.
Ethena’s ecosystem continues to expand, including real-time funding-based yields and transparent reporting. The token’s performance remains closely tied to Ethereum, which could affect future returns depending on market conditions. Analysts note that if ENA fails to hold the $0.452 support, the token could drop toward $0.36 in the short term.