ENA Price Reaches All-Time High, Seeks $2 with Ethena’s 50% Staking Upgrade

Key Takeaways

• Ethena Labs announced season 2 of staking with improved rewards.
• The ENA price reached a new all-time high of $1.40 earlier today.
• Can the upward trend continue until ENA reaches $2?

Ethena has taken the cryptocurrency world by storm, breaking revenue records  shortly after its release. However, the protocol is not without its detractors, some of whom believe Ethena will suffer a similar fate as Terra.

Ethena’s native token ENA launched on April 2 and almost immediately reached new all-time highs. The upward trend resumed after a brief consolidation leading to yet another all-time high of $1.40 today.

Will ENA accelerate its increase further with a breakout, or does a correction await?

Ethena Introduces Improved Staking Rewards

On April 8, Ethena introduced season 2 of ENA  rewards.  The new season will introduce improved rewards to users who lock at least 50% of ENA relative to their USDe holdings. Users will need to lock ENA for a minimum of 7 days.

For example, a user that has a $10,000 USDe balance needs to lock a minimum of $5000 in ENA to be eligible for the boost.

It is worth mentioning that the Ethena team will not be able to participate this season. Rather, only ciculating ENA from the airdrop or those bought in the open market will be able to do so. Users will be able to register  until April 10.

USDe is the fastest growing USD denominated asset in the history of crypto pic.twitter.com/xgiRJjf96t 

— G | Ethena (@leptokurtic_) April 8, 2024 

The founder of Ethena Labs, Guy Young, noted that the Ethena stablecoin USDe, is the fastest growing USD denominated asset in the history of crypto.

It took USDe a little more than 100 days to reach 2 billion supply. In comparison, USDT needed over 1,000 days to reach the same threshold, USDC needed nearly 700 while DAI required slightly more than 450 days to achieve the same feat.

Finally, Ethena Labs announced  on April 8 that they have reached an agreement with FRAX, enabling a $250 million USDe allocation.

ENA Price Prediction: What’s Next After All-Time High?

Since ENA only launched on April 2, there is insufficient data for a confident prediction on the future trend. However, it is visible that ENA created a higher low and has increased since breaking out from a descending resistance trend line on April 6.

The movement since the breakout has been contained inside an ascending parallel channel. Even though such channels usually contain corrective movements, ENA trades in its upper portion and inside the previous all-time high resistance of $1.30 (green icon). This area is likely to provide support.

The ENA price can confirm its bullish trend with a breakout from the channel. If that happens, the next resistances will be at $1.60 and $2.06, 20% and 55% above the current price, respectively.

On the other hand, closing below the channel’s midline and the $1.30 area can trigger a 12% drop to the channel’s support trend line at $1.20.

ENA Can Confirm Trend with Breakout

The ENA price reached a new all-time high today. However, the future trend’s direction is not confirmed due to the price trading inside a parallel channel. ENA can confirm its bullish trend by breaking out from the channel, something that could cause an upward movement toward $1.60 and possibly $2.06.