Ethena crypto is back in the spotlight as ENA clings to the $0.79 support zone, with growing USDe stablecoin adoption fueling expectations of a possible breakout above $1.
The recent wave of developments around Ethena Labs, including strategic investments, ecosystem partnerships, and treasury accumulation, has reinforced market confidence. Investors are now weighing whether these catalysts can offset persistent whale activity and sustain bullish momentum.
Ethena Labs Expands USDe Adoption
Ethena Labs recently announced a strategic investment in Based, a leading builder within the Hyperliquid ecosystem, to drive adoption of the Ethena stablecoin USDe. According to Based, the funds will accelerate USDe’s integration across Hyperliquid’s trading products.
Ethena announced a strategic investment in Based to accelerate USDe adoption and strengthen its role within the Hyperliquid ecosystem. Source: Based via X
“We think USDe can play a key role in the Hyperliquid ecosystem and want to be a conduit through which that can happen,” the team posted on X.
Currently valued at $12.8 billion in market capitalization, USDe ranks as the third-largest stablecoin globally, behind only USDT and USDC. Its expansion has been rapid, with integrations across FalconX, Telegram’s TON ecosystem, and other trading platforms, strengthening its role in institutional and retail markets alike.
Ethena added that the Based partnership will not only support USDe but also future products like USDtb, further embedding its footprint in DeFi.
Treasury and Institutional Backing Strengthen Outlook
Beyond ecosystem expansion, Ethena Labs has been actively bolstering its treasury. StablecoinX and TLGY recently injected $530 million in fresh capital, intending to build the first treasury company dedicated to the Ethena stablecoin ecosystem.
Ethena’s ENA token surged 12% following StablecoinX’s $530M funding to expand its ENA reserves. Source: DΞFI ANGIΞL via X
Guy Young, founder of Ethena Labs, emphasized the significance of this financing: “Since the initial announcement, circulation of Ethena’s USDe has risen above $12 billion, showing growing trust in the stablecoin market.”
The treasury operates under a daily buyback schedule of ENA—purchasing $5 million worth if the price holds above $0.70, and $10 million if it drops below $0.70 or falls sharply in 24 hours. This mechanism has already absorbed nearly 14% of ENA’s circulating market cap in cash, tightening supply and reinforcing investor confidence.
Ethena Price Analysis
From a technical perspective, ENA recently broke out of a diagonal resistance trendline that had capped price action since mid-August. The token is now retesting the $0.76–$0.79 resistance zone, which also aligns with Fibonacci retracement levels.
Ethena’s ENA shows a potential bullish breakout, supported by technical uptrends, airdrop incentives, and a revenue-sharing program driving long-term token value. Source: IvanLabrie on TradingView
Momentum indicators support the bullish scenario: the RSI remains above 50, while MACD has confirmed a bullish crossover. Analysts note that a clean breakout above $0.79 could pave the way for ENA to challenge August highs and aim toward the $1 threshold.
However, wave count analysis suggests caution. ENA may be nearing the top of wave B in an A-B-C corrective structure. Failure to clear resistance convincingly could trigger a short-term pullback before any larger rally.
Whale Activity Clouds Sentiment
Despite bullish technicals, whale selling has raised concerns. Over the past two weeks, wallets linked to large holders transferred more than 34 million ENA into Binance, including a single deposit of 5 million ENA valued at $3.8 million. In total, whales have reportedly sold over 140 million ENA, creating persistent supply pressure.
CryptoQuant warns of a potential short-term distribution amid high volume and FOMO. Source: iCrypto via X
Such exchange inflows often signal distribution phases. Yet, retail and mid-tier buyers appear to be offsetting part of this pressure. Spot volume remains elevated, suggesting strong market participation despite the headwinds.
Short Liquidations Add Fuel to Bulls
Derivatives data paints a cautiously optimistic picture. More than $500,000 worth of short positions were liquidated within the last 24 hours, compared to lighter long liquidations. This short squeeze has forced buybacks, adding upward momentum and reinforcing bullish technical structures such as the cup-and-handle pattern visible on daily charts.
The formation suggests potential upside targets of $1.00 to $1.25, provided ENA can sustain buying pressure above the immediate resistance levels.
Final Thoughts
Ethena crypto faces a pivotal moment. On one hand, whale distribution poses short-term risks, keeping sentiment fragile. On the other hand, ecosystem growth through USDe adoption, treasury accumulation, and positive technical indicators offers a compelling bullish case.
Ethena was trading at around $0.79, up 6.25% in the last 24 hours at press time. Source: Brave New Coin
Suppose ENA holds above $0.79 support and clears the resistance convincingly. In that case, it may not only reclaim its August highs but also test the symbolic $1 mark, marking a milestone in Ethena’s journey from stablecoin innovator to broader crypto contender.