Ethena (ENA) Price Analysis: Minor Pullback Shake Whales, Is $1 on Horizon?

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Despite a rejuvenation in the crypto market, Ethena (ENA) continues to struggle with maintaining its bullish momentum. Unable to surpass its previous December levels, the downtrend for Ethena has become more pronounced.

Will this lead to a drop beneath the $1 psychological level, or is an uptrend likely ahead?

ENA Price Analysis

As a crypto investor, I’ve noticed on the 4-hour chart that the Ethena price action shows a brief retreat, forming a falling wedge pattern as the ENA price dips to around $1.15. This downtrend began following the 7.19% drop we experienced last night.

This 1.62% dip during the day was a continuation of increased selling activity, marking a reversal from the 5-day bullish trend experienced in the previous week. This bearish dip led to an almost 40% increase in price over that period.

Nevertheless, it could be a brief setback before the upward trend picks up speed again. For now, the Enamor Network (ENA) price is confined to around $1.3291, marking the top limit for its December price fluctuations.

At the moment, the ENA price appears to be showing signs of a possible price drop rejection over the past two 4-hour periods, indicating a potential change in direction. However, this bullish turnaround could encounter resistance around the 78.60% Fibonacci level, which coincides with the existing trendline resistance at $1.20.

If this breakout in price trends upward, it strongly boosts the likelihood that the upward trend will continue. Potential future prices for Ethena surpassing its current record high could reach the significant level of $1.50 and potentially even $1.75.

Major Ethena Offloading

With Ethena’s footing seemingly shaky, there appears to be a gradual withdrawal by whales and established entities. Over the past day, two wallets have added 16.83 million ENA tokens to centralized platforms, hinting at waning institutional backing for Ethena.

0xc69, a wallet requiring multiple signatures, transferred 10 million ENA tokens valued at approximately $11.9 million onto Bybit. This action left the wallet holding an undistributed 124.7 million ENA tokens, currently worth around $144 million in staking.

It’s reported that this wallet appears to share a deposit address on Bybit with Arthur Hayes, who is the founder of BitMEX.

Moreover, Galaxy Digital transferred 6,380,000 Ethena tokens into Binance at approximately $1.173 per token, totaling around $7.49 million. Previously, the institution took out 10,900,000 ENA tokens from Binance on December 5th, with each token being valued at roughly $0.925.

The organization still possesses approximately 4.45 million ENA tokens, which are expected to yield a total profit of around $2.64 million.

Recently, a substantial investor (referred to as ‘whale’ with the code 0x687) has liquidated their staked Ethena tokens on Binance, amounting to approximately 4,998,230 ENA tokens, currently valued at around $6 million. This sale was executed at an average price of $1.23 per token. Subsequently, the investor withdrew a total of 5,970,000 Ethena tokens from Binance, with each token being sold at an average rate of $0.75.

Should they succeed in earning the profit from this whale transaction, it would amount to approximately $2.38 million. This translates to a staggeringly high return of around 64.2%, achieved within just over four weeks.

Will ENA Price Break Under $1?

On the downside, a potential drop could test the 50 Exponential Moving Average (EMA) around the 61.80% Fibonacci retracement level at approximately $1.1187. Conversely, the significant support for Ethena lies at the $1 price point, which corresponds to the 38.20% Fibonacci level.

Approaching the 200 Exponential Moving Average (EMA) strongly suggests that Ethena’s likelihood of dropping below the $1 mark is minimal, given that the overall cryptocurrency market maintains a bullish trend.

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2025-01-07 14:16