Ethena (ENA) Tests Key Support Amid Rounding Top Pattern After 6.07% Weekly Drop

Ethena (ENA) is currently consolidating near a key horizontal support zone on the 4-hour chart, following a recent pullback in price. The asset is trading at $0.7105, a 1.68% decline over the past 24 hours and a 6.07% drop from seven days ago [1]. This consolidation appears to be forming a rounding top pattern, a classic chart formation that typically signals a potential reversal after a period of price consolidation and waning bullish momentum.

The support zone in question has previously served as a base for upward price movements and is now being tested once again. If ENA manages to hold above this level, it could trigger a bullish reversal and set the stage for a new upward leg. However, a breakdown below this support would validate the rounding top and open the door for a deeper correction, with the next bearish target estimated near $0.65 [1].

Traders are closely monitoring the 50-period simple moving average (SMA) at $0.7496 and the 9-period exponential moving average (EMA) at $0.7179. These indicators currently align with the upper boundary of the recent decline, adding resistance for any attempted rally [1]. A decisive close above the support zone could see the price challenge these levels, with a potential target at $0.80 if the breakout is confirmed by consecutive bullish closes.

Volume has remained stable but has not yet shown the dramatic increase typically associated with a breakout. This measured participation suggests that market participants remain cautious, waiting for further confirmation of the asset’s direction. Any significant shift in volume would likely be a prerequisite for a more sustained move either higher or lower [1].

The rounding top pattern, which has developed as ENA declined from a high of approximately $0.85, indicates a gradual loss of buyer enthusiasm and increasing bearish pressure. While the current test of support is seen as a critical moment for the asset, it remains uncertain whether it will hold or succumb to further downward pressure [1].

Traders are using this moment to reassess their positions and adjust risk management strategies accordingly. The unfolding pattern has drawn attention from both retail and institutional investors, who view it as a potential turning point in the near-term trajectory of ENA. Any breakout—whether to the upside or downside—will likely be accompanied by a sharp move and heightened volatility [1].

Source: [1] CaptainAltcoin's Profile | Binance Square (https://www.binance.com/en/square/profile/captainaltcoin)