Ethena's Institutional Buy-In Sparks Supply Crunch and Bullish Surge

ENA's price has broken above the critical $0.7370 level, sparking renewed optimism among traders and analysts who now see $0.85 as a short-term price target. Recent market data shows the token has surged approximately 16% in the last 24 hours, with trading volume surging 280% in the same period, signaling strong institutional and retail buying interest [1]. This has led to ENA becoming one of the most notable performers in the crypto space, with a cumulative gain of nearly 65% over the past month [1].

The technical outlook for ENA remains bullish, supported by key indicators aligning in favor of a sustained upward trend. A golden cross has formed, as the 50-day exponential moving average (EMA) crossed above the 200-day EMA, a classic sign of long-term bullish momentum. Additionally, the moving average convergence divergence (MACD) remains in positive territory, with the MACD line above the signal line, indicating continued buying pressure [1]. The relative strength index (RSI) stands at 61.77, suggesting strong bullish momentum without reaching overbought levels, leaving room for further appreciation [1].

Fundamental developments also support the price move. Ethena's decentralized stablecoin, USDe, has grown to a market cap of $11.6 billion, becoming the third-largest stablecoin by total supply [2]. The project has also gained institutional traction, with Coinbase Prime now allowing custodial access to USDe, reinforcing its credibility as a decentralized alternative to centralized stablecoins [2]. Meanwhile, the Ethena Foundation has executed $150 million of its $260 million buyback program, removing 3.48% of the circulating supply and creating scarcity effects that have bolstered investor confidence [2].

On-chain metrics reinforce the bullish thesis, with 140 million ENA tokens withdrawn from exchanges over a four-day period, signaling accumulation by long-term holders [4]. Whale activity has also remained strong, with over 32 million ENA tokens added by large investors in a single day [3]. These actions suggest that the market is preparing for a potential extension of the rally, with key resistance levels such as $0.85 becoming focal points for near-term price action [2].

Analysts have drawn attention to the $0.65–$0.68 support zone as a critical level for ENA. A retest of this area is seen as a potential buying opportunity, with $0.85 as the primary target if the price sustains above these levels [2]. The Supertrend indicator remains in a positive state, confirming the ongoing uptrend [1]. However, caution is advised, as short positions have grown rapidly, with major liquidation levels identified at $0.689 and $0.728 [3]. This suggests that while the higher time frame remains bullish, the short-term outlook could experience volatility if support is tested [3].

The broader macro environment has also provided favorable conditions for altcoins like ENA, as capital rotates out of Bitcoin and into Ethereum-based assets, signaling the potential start of an altseason [3]. Ethena's growing ecosystem and regulatory-friendly positioning—particularly under the GENIUS Act—have further strengthened its case for sustained growth [2]. If the buyback program is completed and extended, the token could see further momentum toward $0.90 [2].

Source: [1] Ethena's Bullish Momentum Accelerates as Traders Eye... (https://www.bitget.com/news/detail/12560604926930) [2] Ethena Price Jumps 18% as Buybacks and USDe Growth... (https://www.banklesstimes.com/articles/2025/08/23/ethena-price-jumps-18-as-buybacks-and-usde-growth-fuel-rally/) [3] Ethena set for 6% correction - Why do whales keep buying? (https://ambcrypto.com/ethena-set-for-6-correction-why-do-whales-keep-buying/) [4] Ethena (ENA) Price Prediction (https://bravenewcoin.com/insights/ethena-ena-price-prediction-is-ethena-building-enough-support-to-cross-the-1-37-mark-this-year)