Ethena (ENA) Crashes 93% From ATH: Why Retail Now Beats the $0.40 VC Entry

Ethena’s native token, ENA, has plummeted roughly 93% from its peak, trading near $0.13 as of February 2, 2026. The sharp decline has placed the token within a critical demand zone, drawing attention from retail investors and analysts alike. This move has sparked renewed interest, particularly as ENA now trades below its initial private sale price of $0.40.

The price action suggests the token is consolidating within a descending channel that has been in place since 2024. Analysts, including Crypto Patel, highlight that this pattern has persisted for over a year with each rally stalling lower and each decline testing the channel’s support. The current price is now pressing against the lower edge of this structure, where buyers have previously intervened.

Retail investors are gaining an edge in this scenario, as the price remains below the $0.40 entry point for early investors. This has led to increased speculation and cautious optimism, especially with the price tightening near support levels.

Why Did This Happen?

The ENA price has fallen into a well-defined descending channel, indicating sustained bearish pressure. Each rally has failed to break through prior highs, while each drop has moved closer to the lower boundary of the channel. This pattern has persisted for over a year, with the current test of the lower edge indicating a potential turning point.

Ethena has faced significant selling pressure due to token unlocks and broader market conditions. The token remains far below its highs, and its model has drawn comparisons to past failures in the sector. Additionally, macroeconomic factors and risk appetite in the broader cryptocurrency market influence the ENA price.

What Are Analysts Watching Next?

Analysts are closely watching the $0.08 to $0.06 support zone, as a clean break below this area could open the door for further losses. A clean rebound above this zone could allow for a relief move back toward the middle of the channel.

Crypto Patel also points to a longer-term downside level near $0.07, which aligns with past price structure. If the price remains above this zone, it could signal a potential reversal.

Despite the sharp decline, Ethena’s ecosystem continues to grow. USDe has become one of the largest stablecoins, with a supply near $5.8 billion. The project also plans to route protocol revenue to stakers in 2026, potentially offering value to holders.

Looking ahead, Ethena is preparing an institutional product tied to USDe and building its own blockchain. These developments may help attract renewed interest despite the current bearish conditions.

Investors are advised to monitor the $0.13 level and the support zone around $0.08. A failure to hold above these levels may signal further downside. Conversely, a strong rebound could indicate a potential trend reversal.

The market’s reaction to broader macroeconomic factors and regulatory developments will also play a critical role in ENA’s price action. Institutional adoption and regulatory clarity could provide a significant boost if they materialize.