Ethena (ENA) at a Crossroads: Bullish Reversal or Bearish Correction?

Ethena (ENA) has entered a pivotal phase in its price trajectory, with conflicting technical signals and shifting market sentiment creating a high-stakes environment for investors. As the token approaches critical junctures in its chart patterns, the interplay between bullish reversal formations and bearish correction risks demands a nuanced analysis.

Bullish Reversal Patterns: A Case for Optimism

A double bottom reversal pattern is forming on ENA's price chart, with the asset holding above a key support level of $0.6837Will Ethena bounce back with the OKX listing? - FXStreet^[2]. This pattern, often a precursor to upward momentum, is reinforced by a bullish divergence on the Relative Strength Index (RSI), which currently stands at 47.38Ethena is Trading 25.49% Above Our Price Prediction for Sep 24, …^[1]. The RSI divergence suggests that buyers are gaining control despite the neutral market sentiment indicated by the Fear & Greed index (52)Ethena is Trading 25.49% Above Our Price Prediction for Sep 24, …^[1].

The Moving Average Convergence Divergence (MACD) is also approaching its signal line, hinting at a potential bullish shift in momentumWill Ethena bounce back with the OKX listing? - FXStreet^[2]. Crucially, the OKX exchange listing—scheduled to boost trading volume and investor interest—could act as a catalyst for a breakout above the $0.7000 resistance levelWill Ethena bounce back with the OKX listing? - FXStreet^[2]. If successful, this could propel ENA toward the 100-period Exponential Moving Average (EMA) at $0.7290Will Ethena bounce back with the OKX listing? - FXStreet^[2], a level that has historically acted as a psychological barrier.

Whale activity further supports a bullish narrative. Large investors have been accumulating significant amounts of ENA, signaling confidence in the token's short- to medium-term prospectsEthena Price Set to Crash as a Risky Pattern Forms Amid Whale …^[4]. Meanwhile, Taker buy volume has surged to 49.18%, indicating strong long-position buildingWill Ethena bounce back with the OKX listing? - FXStreet^[2].

Historical backtests of a 30-day hold strategy following the double bottom pattern reveal an average return of 5.2% with a win/loss ratio of 1.4Ethena $ENA Price Faces Pressure as Double Top Looms^[3]. Over the period from 2022 to 2025-09-19, the total return was 89.6%, annualized at 24.7%Ethena $ENA Price Faces Pressure as Double Top Looms^[3]. However, the strategy also carries risks, with a maximum drawdown of 51.1% and a Sharpe ratio of 0.65, indicating moderate risk-adjusted returnsEthena $ENA Price Faces Pressure as Double Top Looms^[3]. These findings underscore the potential rewards of the pattern while highlighting the need for disciplined risk management.

Bearish Indicators: The Shadow of Correction

However, a double top pattern is also emerging, with Fibonacci retracement levels and the TD Sequential indicator pointing to a potential price correctionEthena $ENA Price Faces Pressure as Double Top Looms^[3]. Ethena is currently trading 25.49% above predicted levels for September 24, 2025, with a bearish price projection of $0.540785Ethena is Trading 25.49% Above Our Price Prediction for Sep 24, …^[1]. This projection is supported by 13 bearish indicators versus 12 bullish onesEthena is Trading 25.49% Above Our Price Prediction for Sep 24, …^[1], underscoring the market's uncertainty.

The token's position below both the SMA 50 and SMA 200 adds to the bearish caseEthena is Trading 25.49% Above Our Price Prediction for Sep 24, …^[1]. A breakdown below the $0.6837 support level could trigger a decline to $0.6109Will Ethena bounce back with the OKX listing? - FXStreet^[2], while a confirmed double top pattern might push the price toward $0.52Ethena $ENA Price Faces Pressure as Double Top Looms^[3]. The Stochastic RSI and Stochastic Fast indicators remain neutral, but the Awesome Oscillator and MACD have yet to confirm a clear directional biasEthena is Trading 25.49% Above Our Price Prediction for Sep 24, …^[1].

Market Sentiment: Neutral Ground with High Volatility

The Fear & Greed index's neutral reading (52) reflects a market in transitionEthena is Trading 25.49% Above Our Price Prediction for Sep 24, …^[1]. While this suggests neither extreme optimism nor panic, it also highlights the lack of a dominant trend. The Open Interest (OI) for ENA derivatives has declined, signaling reduced trader activity and heightened uncertaintyWill Ethena bounce back with the OKX listing? - FXStreet^[2]. This divergence between on-chain metrics and price action underscores the need for caution.

Strategic Implications for Investors

For investors, the coming weeks will be critical. A breakout above $0.7000 could validate the double bottom pattern and attract institutional buyers, while a breakdown below $0.6837 might accelerate a bearish correction. Key support levels to monitor include $0.690797 and $0.682574Ethena is Trading 25.49% Above Our Price Prediction for Sep 24, …^[1], with resistance at $0.711006 and $0.722992Ethena is Trading 25.49% Above Our Price Prediction for Sep 24, …^[1].

Conclusion

Ethena's technical landscape is a battleground of competing signals. While bullish reversal patterns and whale activity suggest a potential rebound, bearish indicators and declining open interest warn of a possible correction. The OKX listing and subsequent volume surge could tip the balance, but investors must remain vigilant to the risks of a double top confirmation. As the market navigates this crossroads, disciplined risk management and real-time monitoring of key levels will be paramount.