Ethena (ENA) Price Shatters 3-Month Barrier — Next Leg Higher May Start Above $0.45

Key Takeaways

• Ethena (ENA) broke out from an 88-day resistance trend line.
• The price failed to close above the $0.45 horizontal resistance.
• Can ENA close above this resistance and move toward $1?

Ethena paced the crypto market with over 15% gains in the past 24 hours. Before accelerating the rally, ENA broke out from a 3-month resistance, suggesting its downtrend is over.

Now, the ENA price faces a make-or-break resistance at $0.45. Can it break out above it and move to new highs, or will its rally be short-lived? Let’s find out.

ENA Price Reaches Resistance

The daily time frame chart shows that ENA broke out from a descending resistance trend line on May 9.

Before the breakout, the trend line had existed for 88 days, preceding a 52% downward trend.

After the breakout, ENA reached a high of $0.46 before falling slightly and being rejected by the $0.45 resistance.

The $0.45 area is key, and a breakout above it can accelerate the upward trend further.

If that happens, the ENA price could reach the next resistance at around $0.80.

Technical indicators paint a bullish picture. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are increasing.

The RSI is above 50 while the MACD is positive, both signs of a bullish trend. As a result, the ENA price analysis is bullish, and a breakout above $0.45 is likely.

Let’s look at a lower time frame and see what might happen next.

What’s Next for ENA?

While the long-term prediction is bearish, there are two possibilities for ENA’s short-term movement. 

The bearish possibility (top) is that ENA has completed a five-wave upward movement and will soon begin an A-B-C correction (red).

Ethena’s bullish count (bottom) suggests the price finished its five-wave increase and ensuing correction before starting another upward movement.

The bearish count is slightly more likely since the RSI and MACD have generated bearish divergences (orange).

If a retracement happens, the $0.33-$0.36 area can provide support before the price heads higher.

In both possibilities, an eventual breakout above $0.45 is likely.

Bullish Long-Term Trend

ENA’s long-term analysis is bullish, suggesting the price will break out from the $0.45 horizontal resistance area.

However, it is unclear if the short-term local top is in. Two valid wave counts are in place, one of which predicts a significant retracement before new highs.

The reaction to the $0.45 is key in determining which will play out.