Ethena (ENA) Loses Key Support Level, What’s Next?

Ethena (ENA) is trading at $0.81 after losing the crucial $0.86 support level.

ENA’s market cap has dropped from $3.8 billion to $2.47 billion since early January.

Analyst Ali Martinez warns of a potential price correction to $0.69 or $0.57 if $0.86 support is not reclaimed.

Ethena token , a cryptocurrency that once saw explosive growth in late-2024, is now facing a major downtrend. Following a sharp decline that saw it lose the critical support level of $0.86, the token is currently trading at $0.81, showing no gains or losses in the past 24 hours.

The token briefly recovered to $0.83 on January 14, rebounding from a low of $0.7255 earlier in the week. However, over the last seven days, ENA has shed 17% of its value.

In the monthly chart, ENA remains down by 35%. Analysts attribute this slump to a broader market downturn and significant whale sell-offs. Notably, on December 26, 2024, whale traders liquidated 3.36 million ENA tokens valued at $3.17 million on . This sell-off led to a 10% drop in ENA’s price, dragging it to $0.92.

The start of 2025 brought some optimism as ENA climbed to $1.27, but the rally was short-lived. The token has since retraced to its current level, sparking concerns among investors.

Key Levels

Popular crypto analyst Ali Martinez weighed in on ENA’s price action, noting that the token has broken out of a parallel price range channel of $0.85 and $1.3. Notably, ENA has been trading under this zone since early December till January 13. Martinez that if ENA fails to reclaim $0.86 as support, it could face a price correction toward $0.69 or $0.57.

Meanwhile, Bollinger Bands analysis shows wide gaps between the upper and lower bands, signaling heightened volatility. The token’s price has fallen below the 20-day simple moving average (SMA), edging closer to the lower band. Analysts suggest that if ENA can hold this level, a potential upward trend could emerge in the coming days.

Adding to the intrigue, a whale 1.96 million ENA tokens valued at $1.63 million from Binance on January 15. This move indicates a possible long-term strategy, with the investor opting for self-custody. Such actions often signal confidence in the asset’s future prospects, even amid short-term volatility.

ENA’s Market Cap Takes a Hit

Since its launch in April 2024, ENA has experienced impressive growth, reaching a market cap of $3.8 billion by January 4. However, the token’s market cap has since dropped to $2.47 billion, placing it 47th among the largest cryptocurrencies by market capitalization.

In addition, ENA’s 24-hour trading volume has declined by 27%, now standing at $440 million. While the short-term outlook remains uncertain, the whale activity and potential price stabilization provide a glimmer of hope for the token’s recovery.