⚡ ENA Open Interest Hits $1B — Is This the Bullish Breakout Signal?

Positive mood and speculative demand boost Ethena over 5% on Thursday.

Open interest in futures contracts rises beyond $1 billion after falling to $916 million.

Short position investors suffer most from liquidations when financing rates rise.

Ethena (ENA) is up more than 5% on Thursday, trading at $0.63. ENA maintains a short-term bullish structure as Open Interest rises, which might push it toward $0.70 barrier.

Ethena recovers as interest stabilizes

Ethena's futures market illuminates the intraday breakout, indicating the short-term bullish case may persist. CoinGlass data shows that Open Interest (OI), the notional value of futures and options contracts, has recovered over $1 billion. Last week's sell-off dropped it to $916 billion.

A prolonged rise in OI demonstrates traders' confidence in the upswing and willingness to leverage long bets. Positive funding rate (chart below) supports optimistic outlook. As sentiment rises, Ethena is more likely to break $0.70 and continue the move over $1.00.

In the previous 24 hours, derivatives liquidations totaled $4.2 million. Short position investors lost $3.63 million compared to $623,000 in longs. The rise in short position liquidations supports Ethena's optimistic thesis.

Ethena bulls expect short-term breakout

Ethena price is above the 50-period Exponential Moving Average (EMA) at $0.58, the 100-period at $0.55, and the 200-period at $0.48, supporting its short-term positive technical structure.

Speculative demand may continue consistent if the blue MACD line stays above the red signal line. The 4-hour Relative Strength Index (RSI) is reaching overbought territory, supporting buying pressure.

Keeping Ethena below the falling broken trendline might delay the upswing or stimulate risk-off attitude and profit taking. Bulls may gather liquidity before pushing over $0.70 barrier and $1.00 crucial milestone with a daily closing above $0.60.

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