Is Ethena Going To Zero? ENA Price Stumbles 17% in 7 Days
Profit-taking and a shakeout of weak hands have sent Ethena spiralling, with uncertain market sentiment over the past week weighing heavily on ENA price predictions.
The altcoin ranks among the top 3 losers in the top 100, down 17%, fueled by unsuccessful Russia-Ukraine peace talks and hotter-than-expected U.S. PPI inflation data, which dent hopes for a September rate cut.
Still, analysts anticipate up to four rate cuts before year-end, with the potential to stimulate new demand for risk assets like cryptocurrencies.
Ethena Down But Not Out
Coinglass derivatives data shows speculative demand for ENA fading, with open interest down over 18% over the past 7 days as derivatives traders move to the sidelines.
ENA Open Interest. Source: Coinglass.That said, those still active in the market are positioning for upside, with a long/short ratio of 2.93 on Binance showing more than 74% of traders longing the ENA price.
Meanwhile, prominent whales are buying-the-dip. Lookonchain reports that Crypto billionaire Arthur Hayes pulled a 180 on a 7.76 million ENA token dump, buying back higher around its August 11 peak.
Hayes has since doubled down, bringing the total accumulated to 3.1 million ENA on August 15 after the altcoin started to correct, a testament that the Ethena price bull run is not over yet.
ENA Price Analysis: Is Ethena Going to Zero?
The bull run may not be over just yet, with ENA flashing a potential cup-and-handle on the daily chart, a classic bullish continuation pattern.
ENA / USDT 1-day chart, potential cup and handle reversal. Source: TradingView, Binance.The key breakout threshold sits at $0.85, the resistance that capped Ethena’s most recent rally.
While Ethena has found support at the $0.68 0.618 Fibonacci level, a common bottom marker for sharp reversals, though momentum indicators are mixed.
The RSI is holding above the neutral 52 zone, hinting that selling pressure may be cooling as bulls look to retake control.
Yet, the MACD continues to widen below the signal line after a recent death cross, signaling that the downtrend still carries weight.
If $0.68 is lost as support, the correction may extend to the next historical support level around $0.51 as the bottom for the handle.
A credible scenario with the September FOMC meeting still 29 days away. Potential rate cuts remain distant, leaving ENA without a near-term catalyst for demand to halt the decline.
When demand returns, a breakout opens the doors for a retest of the all-time high around $1.32, and a push into new price discovery targeting $3.25 for a potential 400% gain.
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