Ethena (ENA) has been on a turbulent ride since its all-time high shortly after launching in April 2024. After reaching $1.33 in December 2024, the token has been in a persistent downtrend, struggling to find solid footing. The past week saw ENA nearly breaking down from its critical $0.37 support, but a bounce has reignited speculation about a potential trend reversal.
ENA Holds Key Support Level
Since hitting its cycle high, Ethena has posted lower highs, signaling continued bearish pressure. In early March 2025, ENA reached a low of $0.337, appearing to break below the crucial $0.37 support. However, a rapid bounce has reclaimed this level, a move that often precedes upward momentum.
Technical analysis suggests a potential short-term rebound. The Relative Strength Index (RSI) and the Moving Average Convergence/Divergence (MACD) have both exhibited bullish divergences, a pattern that historically precedes price increases. However, confirmation is still needed, with the RSI requiring a move above 50 and the MACD crossing into positive territory.
Short-Term Price Predictions for ENA
Ethena’s wave count presents two possible scenarios, both forecasting a temporary bounce:
- Bullish Scenario: If the decline since December is part of an A-B-C correction, ENA could be preparing for a breakout. This projection sees a potential rally toward the $0.82 resistance level.
- Bearish Scenario: If the downtrend is part of a five-wave decline, ENA is currently in wave four, meaning it could rise to the $0.70 resistance before resuming its descent to new lows.
Key Levels to Watch
- $0.37 Support: Holding this level is crucial for bullish momentum.
- $0.70 Resistance: A breakout above this could confirm a larger upward movement.
- New All-Time Low: A breakdown below $0.37 could accelerate losses.
Also Read: ENA Price Rebound? Analyst Predicts Recovery Amid Bearish Trend & Ethena’s iUSDe Launch
While Ethena’s short-term trajectory looks promising, traders should closely monitor resistance levels. If the bounce extends beyond $0.70, a bullish reversal may be in play. However, failure to sustain momentum could push ENA toward uncharted lows.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
