Ethereum News Today: Ethena Falls Below $0.55 as Key Support Breaks and Bearish Momentum Intensifies

Ethena (ENA), a token that had recently reached a local high of $0.70, has experienced a sharp decline, falling below $0.55 as of late July 2025 [1]. The price movement has drawn the attention of traders and analysts, with several technical breakdowns indicating bearish momentum. Elite analyst Ali Martinez observed that the token has broken through a key support level at $0.55, which had previously acted as a floor for short-term price action [2]. With volume concentrated between $0.54 and $0.60, losing this range increases the likelihood of a faster decline toward the next key support at $0.49 [2].

The sharp 20% drop in just a few sessions highlights the volatility typical of trending tokens, but also underscores the risks for investors who enter without a clear strategy [1]. On the upside, a reclaim of $0.60–$0.62 would be necessary to signal a potential short-term reversal [2]. However, any rallies in the current environment may face immediate selling pressure. Analysts warn that chasing dips in the middle of a breakdown can lead to frustration, as the token appears weak in the near term.

Despite the bearish technical signals, some analysts remain cautiously optimistic. A $260 million token buyback plan has been cited as a potential catalyst for stronger demand [6], and several reports have positioned ENA as a bullish asset for mid-to-long-term gains [6]. Some market participants suggest that if the token can form a base near $0.49 and stabilize, it could serve as a cleaner entry point for future upside [1]. Meanwhile, a broken support at $0.62 has been interpreted as a short-term panic trigger, but some believe smart money is beginning to accumulate as retail traders offload [9].

The broader market environment has also influenced ENA’s performance. Arthur Hayes, founder of Bitfinex, dumped $13.3 million in Ethereum, Pepe, and ENA in mid-July, amplifying selling pressure across the crypto space [3]. While Hayes has maintained a bullish stance on Bitcoin, the move highlights the uncertainty and macroeconomic concerns affecting altcoins [4]. Further selling occurred on July 29 as Hayes continued to divest parts of his altcoin holdings [5]. These actions reflect a broader market correction, where speculative assets like ENA tend to experience sharper pullbacks when sentiment weakens [2].

In the context of the market dynamics, Ethena continues to feature prominently in multiple “top altcoins to buy” lists. CryptoBrowser.io named ENA among the most promising assets for mid-to-long-term gains, with price targets ranging between $0.85 and $1.00 [6]. A July 15 report from the same source labeled ENA as a top bullish crypto asset in August 2025 [6]. Additionally, a Coinpedia article noted a 17% early gain in ENA’s Front Runners series, indicating faster performance compared to many peers [7].

While the current bearish momentum remains intact, the token’s inclusion in strategic DeFi yield strategies and its buyback plan suggest potential for recovery. The coming weeks will be critical in determining whether ENA can retest $0.55 or if the bearish trend continues. For now, traders are advised to monitor key levels closely and avoid entering trades without clear signals.

[1] https://coinmarketcap.com/community/articles/688f437731f6e26bea19327a/

[2] https://e.thsi.cn/img/17f2188426634cf3

[3] https://bravenewcoin.com/insights/crypto-market-crash-arthur-hayes-dumps-13-3m-in-ethereum-pepe-and-ethena-amid-u-s-tariff-concerns

[4] https://www.cointribune.com/en/arthur-hayes-offloads-eth-pepe-ena-without-touching-btc/

[6] https://cryptobrowser.io/news/top-bullish-cryptos-to-buy-now-with-explosive-growth-potential-blockdag-sei-ethena-and-sui/

[7] https://coinpedia.org/news/top-three-altcoins-to-buy-in-august-2025/

[9] https://www.binance.com/square/post/27733360887066