Ethena ($ENA) Eyes Higher High, Targets $1.30 if Breakout Holds

In Brief

1. $ENA forms higher high pattern with targets at $0.80, $1.00, and $1.30 if confirmed.
2. Price down 50% in a month, facing resistance at $0.594 and key support at $0.435.
3. USDe depeg and altcoin sell-off raise short-term risks despite strong TVL and revenue.

Ethena (ENA) may be forming a higher high on the 12-hour chart, according to analyst Ali, suggesting a bullish reversal. The token has rebounded from $0.38 and now trades near $0.4383, aiming for potential upside targets at $0.80, $1.00, and $1.30.

While the setup shows promise, $0.38 remains critical support for continuation. A confirmed breakout could deliver nearly 190% upside if the structure holds.

Meanwhile, analyst WyckArchitect highlights a developing Elliott Wave structure on ENA’s daily macro chart. The five-wave pattern suggests a potential long-term bottom is forming as $ENA completes its corrective phase.

This structure aligns with historical impulse recovery trends, indicating that $ENA could enter a new growth phase. However, traders must monitor near-term support levels as market sentiment remains fragile.

Market Conditions Cloud Short-Term Outlook Despite Strong Protocol Metrics

Despite bullish technical projections, ENA has dropped 3.4% in 24 hours and is down 21.24% over the past week. It has declined 50% in the past month, reflecting heavy pressure on mid-cap altcoins amid broader macro uncertainty.

The Fear & Greed Index sits at 32 (“Fear”) following the October 11 market-wide $19B liquidation event. ENA’s weakness mirrors the altcoin sector’s underperformance as BTC dominance climbs to 58.7%.

Technical indicators show resistance near the 23.6% Fibonacci retracement at $0.594, with price still below key moving averages. RSI-7 sits at 35.2, while the MACD remains negative, signalling continued caution among traders.

Additionally, a temporary depeg in Ethena’s USDe stablecoin to $0.65 on Binance raised concerns during last week’s volatility. Though USDe recovered, confidence in ENA’s delta-neutral model was briefly shaken.

Still, Ethena’s fundamentals remain strong with over $15B TVL and 8-figure monthly revenue. Analysts agree that sustained support above $0.435 is essential for any upward continuation.