- Ethena has left the rising channel pattern behind, with growing sales pressure causing the decline.
- Both technical indicators and on-chain metrics confirmed widespread selling activity.
Ethena [ENA] recently breached the $1 mark – a level it last reached in June 2024 – but failed to hold its position and has since fallen below it.
The daily decline was 6.26% at the time of writing, pushing ENA’s weekly gain down to 12.85%. Sentiment indicators suggested that the value could fall further.
Increasing channel distribution: not a good sign
ENA recently exited the ascending channel as market sentiment turned bearish, resulting in more selling than buying activity.
An ascending channel is formed when price moves within a certain upward range but eventually breaks below the lower limit, often returning to the starting point of the channel.
For ENA, the decline could pause around the $0.8888 level, providing an opportunity to reassess for a possible rebound or a continued decline.
If the decline continues, two key support zones come into focus: $0.6852 and $0.5826. A drop to either of these levels would wipe out more than half of the gains ENA made during its climb to $1,477.
Source: trading view
More losses for ENA?
ENA could face additional losses if a “death cross” formed on the Moving Average Convergence Divergence (MACD) indicator at the time of writing.
The MACD is a trend-following momentum tool that tracks the relationship between two moving averages of an asset’s price.
A deathcross occurs when the short-term moving average (blue MACD line) crosses below the long-term moving average (orange signal line), indicating potential bearish momentum in the market.
Adding to the bearish outlook, the Relative Strength Index (RSI) has fallen below neutral 50 and currently stands at 44.58. This suggests that market bears are selling ENA in favor of other cryptocurrencies.
Source: trading view
If these trends continue, ENA’s price will likely continue to fall below current levels.
Sellers flood the market
There were more sellers (short positions) than buyers (long positions) in the market at the time of writing, as evidenced by the long-to-short ratio of 0.8847.
When this ratio falls below 1 – as with ENA at the time of writing – it generally signals a further decline in the price of the asset.
Read Ethena’s [ENA] Price forecast 2024–2025
This trend is clearly visible in the recent market losses. Over the past 24 hours, long traders have collectively lost about $1.19 million, while short traders have suffered a smaller loss of $95,400 per Coinglass.
Since the short side has suffered fewer losses, the market appears to be favoring sellers, indicating that ENA is likely to continue its downtrend.