Is the ENA Correction Over? | Credit: Hameem Sarwar
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Key Takeaways
Ethena (ENA) has completed a double top pattern with a 35% decline.
The price could be in the fifth and final wave of an upward movement.
Will Ethena reach a new all-time high, and what are the next targets if so?
Ethena (ENA) plunged almost 90% after its April 2024 all-time high. The correction continued until September, when momentum shifted, and the price finally started to rally.
ENA almost reached new highs in December but fell slightly before doing so.
Even though the decline since these highs is substantial, the price shows preliminary signs of a bullish trend reversal. Let’s examine the charts and see if the ENA correction is finally over.
Ethena’s price created a double top pattern between Dec. 16, 2024, and Jan. 4, 2025. The double top is considered a bearish pattern, leading to downward movements most of the time.
As expected, ENA confirmed the pattern by breaking down from an ascending support line and falling to a low of $0.72 on Jan. 14, a 35% drop from the highs.
While ENA has bounced since, validating the 0.5 Fibonacci retracement support level (white icon), it still needs to reclaim the previous ascending support trend line and $0.85 horizontal resistance area.
The trend cannot be considered bullish until the price closes above these levels.
Despite the ongoing rebound, technical indicators are anything but bullish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) generated bearish divergences (green) before the downward movement.
So, the ENA price has to continue its bounce above the main resistance levels to confirm that the correction is over.
Is the ENA Correction Over?
Ethena’s wave count is clearer than its price action, giving a bullish prediction. According to the count, the double-top pattern and ensuing decline were part of wave four in a five-wave upward movement (white). The sub-wave count is in black.
Sub-waves A and C had nearly the same length, indicating the correction was complete.
If the count is accurate, ENA has now started the fifth and final wave to the upside. The main target range for this movement is between $1.70-$1.86. The 1.61 external Fibonacci retracement (yellow) creates the lower portion of this range.
The upper portion is created by giving wave five the same length as waves one and three combined. Both targets represent new all-time highs for Ethena.
After ENA reaches its target, it will likely begin a lengthy correction that retraces a portion of the entire increase that started in September 2024.
New Ethena All-Time High
The ENA price has rebounded well after its Jan. 14 lows. The level at which it bounced, combined with the wave count, suggests the correction is over.
ENA can confirm this trend reversal by increasing above its previous ascending support trend line, which has now turned to resistance. The target for the top of wave five is between $1.70 and $1.86.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
