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Ethena (ENA) Price Jumps 25% — Must Break Key Pattern for Bullish Reversal

Published
Valdrin Tahiri
Published
By Valdrin Tahiri
Edited by Ryan James

Key Takeaways

  • Ethena fell 45% after creating a double top pattern.
  • The price is attempting to bounce at the $85 support.
  • Can ENA start a bounce and reach a new all-time high?

Ethena (ENA) started an impressive rally in September 2024, gaining 600% in 100 days.

However, the price has fallen since, sharpening its decline after a failed attempt at moving to new highs in December. What followed was a 45% drop to a low of $0.72.

While ENA has bounced since it still needs to reclaim its primary diagonal resistance to confirm its bullish trend reversal.

Let’s examine the price action and see how likely that is.

ENA Creates Bearish Pattern

Between Dec. 16, 2024, and Jan. 4, 2025, ENA created a double top, considered a bearish pattern. The double top often happens near the end of upward movements and marks the beginning of the bearish trend reversal, as with ENA.

Once ENA broke down from its ascending support trend line and validated it as resistance (black icon), it confirmed the double top pattern was materializing.

Even though ENA fell 45% after the highs, reaching a low of $0.72, it still managed to bounce and prevent a breakdown from the $0.85 horizontal support area, which has existed since the start of December 2024.

ENA Pattern
ENA/USDT Daily Chart | Credit: Valdrin Tahiri/TradingView 

Technical indicators do not confirm if the bounce will continue. Both the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) generated bearish divergences (green) during the pattern and have now fallen below their bullish thresholds at 50 and 0, respectively.

While they show waning bearish momentum, confirming the bullish trend reversal is insufficient. To do so, ENA has to reclaim its ascending support trend line at $1.

Final ENA Price Increase

Ethena’s wave count gives more optimism than the price action. The most likely count suggests that Ethena has just started the fifth and final wave of its upward movement (white). The double top and decline that followed were part of wave four, as noted by the sub-wave count (black).

If the count is accurate, the main target for the top of this increase will be between $1.69 and $1.86. The target is created by the 1.61 external Fibonacci retracement (yellow) and by giving wave five the same length as waves one and three combined (white).

Afterward, ENA could begin a lengthy corrective period.

ENA Count
ENA/USDT Daily Chart | Credit: Valdrin Tahiri/TradingView 

Despite the positive readings, Ethena’s price needs to reclaim the ascending support trend line to confirm the start of wave five. Until it does, the possibility of a deeper correction will remain.

Ethena Above $1.50

ENA has rebounded in the last few weeks, showing preliminary signs that the correction is over.

While the price still needs to reclaim a key diagonal resistance, doing so will confirm the beginning of an upward movement toward $1.69-$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.
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Valdrin Tahiri

Valdrin discovered cryptocurrencies while getting his MSc in Financial Markets from the Barcelona School of Economics in 2017. He has been an avid investor and trader since. Valdrin has written for several cryptocurrency media companies such as BeInCrypto and CoinGape.
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