After a week of volatility, Ethena (ENA) has seen its price surge for two consecutive days, primarily driven by increased whale activity and dwindling exchange balances that have reached their lowest levels in months, cementing USDe’s continued stability.
Summary
- Ethena has rebounded sharply from its recent lows this month.
- The USDe stablecoin maintains a strong peg this week.
- Whale investors and notable public figures are increasing their holdings.
Ethena’s price has shot up to $0.4700—an impressive 210% recovery from its recent month-low levels. This resurgence has propelled its market capitalization to over $3.2 billion.
This upward trend follows USDe’s stabilization, which had previously dipped below its $1 target due to the recent downturn in the crypto market. After developers released data indicating that USDe is overcollateralized, the coin regained its peg. Currently, USDe reports a total supply of $12.18 billion against reserves of $12.25 billion, backed by assets including Bitcoin (BTC), Ethereum (ETH), and other liquid stablecoins.
In addition, Ethena’s recent strategic alliance with Conduit, a platform that supports over 55% of Ethereum chains, is amplifying optimism around ENA. This partnership ensures that developers leveraging Conduit can tap into Ethena’s infrastructure to create their own stablecoins.
Whale activity has played a significant role in this price boost, with data indicating that large investors have ramped up their ENA holdings. Whale wallets have swelled from 41.6 million ENA tokens on October 1 to 46.6 million tokens—suggesting that these market players anticipate further price appreciation.
Notable investors such as Arthur Hayes and Kain Warwick now possess a combined total of 66.9 million ENA tokens, reflecting a staggering 600% increase compared to the previous month.
This accumulation trend has led to an alarming decrease in available ENA tokens on exchanges. Current exchange holdings stand at 4.58 billion ENA, down from 4.94 billion as of October 7. This decline serves as a strong indication that investors are opting to retain their holdings rather than sell, favoring self-custody wallets instead.
Technical Analysis of Ethena’s Price
The daily price chart indicates a formation of a double-top pattern at $0.8538, marking the token’s peak in August and September. Following that, ENA experienced a significant decline below the neckline at $0.6060 during the recent market downturn, hitting a low of $0.1475. The price is currently stabilizing just beneath the psychological resistance level of $0.50.
The most plausible outcome suggests a bounce back toward key resistance at $0.6060, representing a potential 30% upward movement from current levels. However, a concerning risk emerges if the token forms a “death cross” pattern. This occurs when the 50-day and 200-day Exponential Moving Averages intersect, signaling a possible continuation of the downtrend that could threaten a revisit to this year’s low of $0.1475.
Understanding Ethena
Ethena is an innovative cryptocurrency designed to ensure price stability without relying on conventional collateral or centralized systems. Its algorithmic mechanism aims to maintain value through real-time supply and demand adjustments, unlike standard stablecoins like USDT or USDC that depend on fiat reserves.
Developed by Ethena Labs, a team dedicated to decentralized finance (DeFi) protocols, Ethena aims to redefine stability in the crypto sphere. The fundamental vision behind Ethena is to create a stablecoin capable of retaining value without centralized control or significant collateral support.
