Ethena Plummets Below $0.55 as Key Support Breaks and Bearish Momentum Intensifies

Ethena (ENA) is under increasing bearish pressure as key support levels break down, triggering concerns among traders and analysts. The price has fallen below $0.55, a level that had previously acted as a short-term cushion, and currently trades at $0.5523. The breakdown of the $0.56 support has flipped it into resistance, signaling a shift in momentum toward the downside [1]. Analysts warn that if selling pressure continues, the next potential support level is $0.49, with further downside risks to $0.485 and beyond [1].

Candlestick patterns indicate a continuation of the bearish trend, with lower highs and lower lows reinforcing the downward trajectory. The price action has failed to reclaim key levels such as $0.56 and $0.60, which were previously seen as strong support and resistance points. This inability to hold above these levels has eroded investor confidence and led to a reevaluation of short-term strategies [1].

The breakdown below the dense trading zone around $0.56 has intensified the bearish outlook. This area had seen the highest concentration of recent trading activity, and its breach suggests a loss of buyer conviction. The immediate support is now at $0.5428, followed by $0.485. On the upside, the price would need to push above $0.60 to signal any meaningful recovery [1]. However, without strong volume confirmation, any rally is likely to remain shallow and short-lived.

A broader view of the market suggests that ENA could trade within a range of $0.50 to $0.65 in the near term, though a continuation of the downtrend may see it fall to $0.40–$0.35. Analyst CJ noted that while this scenario is not his initial expectation, recent weakness has forced a reassessment of the asset’s outlook. The key support levels around $0.40 and $0.35 are seen as critical for the asset’s longer-term stability [1].

Despite the bearish bias, there is still a possibility of a short-term bounce if buyers step in to defend the $0.5428 level. A successful retest of $0.56 could provide an opportunity for bulls to regain control. However, any upward movement is likely to face strong resistance at $0.60 and $0.68, both of which have previously acted as rejection points during prior rallies [1].

The broader crypto market environment also plays a role in ENA’s performance. As smaller-cap assets face increased selling pressure, the decline in ENA reflects broader sentiment shifts. The potential for tighter monetary policy and macroeconomic uncertainties continue to weigh on risk assets, with crypto markets often reacting more sharply than traditional financial markets [1].

Market participants are now closely watching key price levels for signs of capitulation or stabilization. A failure to hold above $0.49 could trigger further selling and potentially extend the downtrend into the next phase of the market cycle. Conversely, a strong rebound from this level may attract bargain hunters and provide a foundation for a potential reversal.

Source: [1] [Analyst Predicts ENA Price Could Drop to $0.49 as Support Weakens] (https://cryptofrontnews.com/analyst-predicts-ena-price-could-drop-to-0-49-as-support-weakens/)