Investor Exodus and $0.65 Support Test Shape Ethena’s Crossroads

Ethena (ENA), a synthetic dollar protocol built on Ethereum, continues to attract attention in the decentralized finance (DeFi) space despite recent price volatility. As of August 20, 2025, the token traded at $0.63, down 4% from its value 24 hours earlier and 21% from its one-week high of $0.79. Despite the decline, ENA has surged 57% over the past month, outpacing other DeFi leaders like AERO and LINK. The token ranks among the top five DeFi assets in yearly growth, rising 117% since the beginning of the year, and has climbed to third in daily DeFi trading volume, according to recent market data.

The protocol's fundamentals remain strong, with Ethena surpassing $500 million in cumulative gross interest revenue and generating $13.4 million in the last week alone. The supply of its synthetic stablecoin, USDe, has also surged by 670 million to a record $11.7 billion. Staking yields for sUSDe remain attractive, offering an APY near 9%. According to DeFiLlama, the Ethena DeFi protocol's total value locked (TVL) has nearly doubled in a month, rising from $5.5 billion in July to $11.9 billion by late August.

Investor behavior also reflects growing confidence in Ethena. Over 140 million ENA tokens were withdrawn from exchanges in four days, indicating accumulation by long-term holders. This trend is often interpreted as a sign of bullish sentiment and reduced selling pressure in the short term. Analysts view these withdrawals as evidence that the market is shifting toward a more patient, long-term investment approach, which could provide a floor for the token's price.

From a technical perspective, Ethena is consolidating near its key support level of $0.65. The token's Bollinger Bands have narrowed, suggesting a potential breakout may be imminent. On the daily chart, ENA is trading close to its lower band, which may indicate oversold conditions. Momentum indicators remain mixed, with the MACD signal flipping negative while the RSI stands at 51, reflecting neutral momentum. Short-term moving averages lean bearish, but longer-term EMAs support an upward trajectory. If ENA holds above $0.65, analysts believe it could rebound toward $0.70–$0.74, with a potential run toward $0.83 or higher if a breakout occurs.

Price forecasts for Ethena remain divided. DigitalCoinPrice projects that ENA could reclaim levels between $1.31 and $1.37, with the possibility of retesting its previous peak near $1.32 if market sentiment improves. On the other hand, Coincodex models predict a bearish scenario in which ENA could drop as low as $0.49–$0.62, highlighting downside risks if market support weakens. Technical analysts like CryptoPulse point to ENA's rejection at the 0.5 Fibonacci retracement level as the cause of recent corrections, but they believe a bounce could materialize if Fibonacci support holds, targeting $0.83–$0.97 in the coming weeks.

Ethena's ability to defend the $0.65 support level is critical for its short-term outlook. A successful rebound could renew investor confidence and strengthen the case for ENA reaching the $1.37 mark this year. However, if support falters, bearish scenarios cannot be ruled out. The broader crypto market's volatility and Ethena's mixed technical indicators mean that investors should remain cautious while closely monitoring key levels for potential turning points.

Source: [1] Ethena Price, ENA Price, Live Charts, and Marketcap (https://www.coinbase.com/price/ethena) [2] 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)