Ethena (ENA) Breaks Higher With 18% Rally After Printing Classic Double Bottom

Key Takeaways

• Bullish reversal confirmed by five-wave impulse structure.
• RSI divergence supports a trend shift from a multi-month bottom.
• A breakout above $0.369 is key for macro confirmation.

Ethena (ENA) has initiated a bounce from major support after completing a prolonged WXYXZ correction.

Price action shows the first signs of a trend reversal, supported by bullish divergence.

The market is now eyeing a reclaim of higher Fibonacci levels, contingent on short-term wave structure resolution and breakout confirmation.

ENA Price Analysis

The 4-hour chart shows ENA completing a multi-month WXYXZ corrective structure, bottoming out at $0.257, which aligns with key horizontal support.

The Relative Strength Index (RSI) formed a strong bullish divergence around this low and has since surged above 50, indicating a momentum shift.

The broader structure highlights a double bottom formation, followed by a currently seen 18% spike from the oversold zone.

The final leg (Z wave) found support above the 1.0 Fibonacci extension level from the previous high.

This confluence of support levels, combined with a sharp recovery and breakout above the descending wedge, signals a potential trend reversal.

Now trading at around $0.30, ENA faces initial resistance at $0.369 and stronger resistance at the 0.786 Fibonacci retracement level ($0.443).

Reclaiming this zone would shift back toward bullish market structure, setting the stage for a potential retest of higher Fib levels toward $0.63 and $0.76.

If the current bullish momentum is sustained, the broader picture suggests the beginning of a new impulsive phase.

However, confirmation requires a decisive break above the $0.369–$0.443 cluster.

Until then, consolidation between $0.26 and $0.36 remains likely, with downside risk capped by the recent low at $0.257.

ENA Price Prediction

On the 1-hour chart, ENA unfolds a clear five-wave impulse from the May 7 low, confirming a potential reversal.

The price is currently in wave (iii) of this impulse, with short-term projections targeting a local high around $0.31 before retracing in wave (iv) toward the $0.29–$0.30 region.

This structure suggests a typical Elliott Wave setup, where wave (v) completion could take ENA near the $0.32–$0.34 area.

A corrective (a)-(b)-(c) pullback is then expected, likely revisiting the $0.28–$0.29 zone, which will be the first higher low.

This retracement will be crucial in determining the sustainability of the rally.

If the correction holds above $0.27, the setup allows for a larger bullish breakout above $0.36, aiming toward the $0.443 level, the 0.786 retracement of the previous major decline.

This level aligns with strong historical confluence and would serve as a validation point for a macro trend shift.

However, if ENA fails to hold above $0.27 during the upcoming correction, it could re-enter the former consolidation range and test support at $0.257.

Short-term traders should watch for volume confirmation and RSI behavior near overbought territory as wave (v) completes.

Key Levels to Watch

• Wave (iv) Support: $0.29–$0.30.
• Short-Term Resistance: $0.34–$0.35 (Wave v).
• Corrective Low Support: $0.27–$0.28.
• Structural Resistance: $0.369 (range high).
• Macro Breakout Level: $0.443 (0.786 Fib).