Ethena ENA Surges 17.6% as Key Resistance Breaks and Institutional Interest Grows

Ethena [ENA] has experienced a significant price surge, climbing 17.6% over the past seven days as of press time. The rally came after the token broke through a key resistance level at $0.485, a threshold it had been unable to surpass for months. This shift in momentum marked a transition from resistance to support, confirmed in late July and fueling a renewed upward trend [1].

Despite this bullish movement, ENA has faced a recent 10.45% retracement within the past 24 hours. The pullback appears to follow an attempt to break through the $0.67 resistance level—a price previously seen in early February. On-chain metrics, such as the Market Fear & Greed Index (MFI), show bearish divergence, suggesting the retracement may not yet be complete [1].

The on-chain data also reflects strong buying pressure. The On-Balance Volume (OBV) has steadily risen since July, indicating sustained accumulation. Meanwhile, the number of daily active addresses has surged, suggesting increased engagement with the Ethena ecosystem. However, this activity may also reflect profit-taking by holders following ENA’s local highs [1].

One of the key developments supporting ENA’s bullish narrative is the launch of StablecoinX, Ethena’s first stablecoin-focused treasury vehicle. The initiative is designed to execute a “multi-year treasury strategy to build a reserve of ENA,” which analysts believe could significantly boost long-term demand for the token. This move underscores a growing institutional interest in ENA’s governance model and utility [1].

Notably, Arthur Hayes, co-founder of BitMEX, has shown strong conviction in Ethena. On July 25, he purchased 2.16 million ENA worth $1.03 million at the time, according to Lookonchain. Arkham data later revealed he holds a total of 7.76 million ENA tokens, valued at $4.59 million, signaling a long-term belief in the project. Hayes’s accumulation is part of a broader trend among whales, with the number of addresses holding 100K-1M ENA increasing from 514 to 574 [1].

Crypto analyst Ali Martinez highlighted these whale accumulation trends in a recent post on X, noting that both large and small address holders continue to buy ENA. This distribution-based activity supports a continued upward trajectory for the token. Nevertheless, the broader cryptocurrency market remains volatile, with Bitcoin falling below $115,000, raising the possibility of further corrections [1].

Ethena’s on-chain dynamics, institutional-grade treasury initiatives, and whale accumulation patterns paint a strong picture for its future. While the path to a $1 price target appears viable, short-term traders and investors should remain cautious, as the retracement and broader market conditions could lead to further price fluctuations [1].

Source: [1] Ethena surges 17% in a week! – Mapping ENA’s road to $1 (https://ambcrypto.com/ethena-surges-17-in-a-week-mapping-enas-road-to-1/)