Ethena is one of the industries most severely affected by recent market headwinds—ENA price forecasts currently face a collapse of the recent upward trend.
Profit-taking and the exit of weak stocks have caused the price of Ethena to spiral downwards, and the uncertain market sentiment over the past week has severely impacted the ENA price forecast.
Due to the failure of peace talks between Russia and Ukraine and better-than-expected U.S. PPI inflation data, which weakened hopes for a rate cut in September, this altcoin ranks among the top three cryptocurrencies, down 17%.
However, analysts expect that central banks will cut rates up to four times before the end of the year, which could stimulate new demand for risk assets like cryptocurrencies.
Ethena is down but not out.
Coinglass derivatives data shows that speculative demand for ENA is weakening, with open interest declining by more than 18% over the past 7 days as derivative traders shift to a wait-and-see approach.
Nevertheless, those still active in the market are preparing for a rise, with Binance's long/short ratio at 2.93, indicating that over 74% of traders are optimistic about the ENA price.
Meanwhile, some well-known whales are buying on dips. Lookonchain reported that cryptocurrency billionaire Arthur Hayes made a sudden 180-degree turn after selling 7.76 million ENA tokens, repurchasing near the August 11 peak.
Subsequently, Hayes doubled down, accumulating a total of 3.1 million ENA by August 15 after the altcoin began to pull back, proving that the Ethena price bull market is not yet over.
ENA Price Analysis: Will Ethena drop to zero?
The bull market may not be over yet, as ENA is showing a potential cup-and-handle pattern on the daily chart, which is a typical bullish continuation pattern.
The key breakthrough threshold is located at $0.85, which is the resistance level that limited Ethena's recent rebound.
Although Ethena found support at the $0.68 0.618 Fibonacci level, which is a common bottom marker for a sharp reversal, the momentum indicators are mixed.
The RSI remains above the neutral 52 zone, suggesting that as bulls seek to regain control, selling pressure may be easing.
However, following the recent death cross, the MACD continues to widen below the signal line, indicating that the downtrend remains strong.
If the support level of $0.68 is lost, the correction could extend to the next historical support level of around $0.51, serving as the bottom of the handle.
There are still 29 days until the September FOMC meeting, making this situation feasible. The possibility of a rate cut is still far off, leaving ENA lacking a catalyst to prevent demand from declining in the short term.
When demand rebounds, a breakout will open the door for a retest of historical highs around $1.32 and drive new price discovery, targeting $3.25, potentially yielding a 400% return.
