Mar 8, 2025
6thTrade
Ethena (ENA) has been testing key resistance levels around $0.5, with the recent liquidation heatmap highlighting the $0.48-$0.515 zone as a critical area for price action. The asset has been struggling to maintain momentum, facing rejection at crucial levels, but there may still be opportunities for traders.
Current Market Structure and Resistance Levels
Ethena’s price dropped below the $0.5 support zone in February but appears to have halted its decline for the time being. A range formation has recently formed below the $0.5 resistance, presenting potential profit opportunities for traders.
Bitcoin’s volatility could influence ENA's price direction, as Bitcoin recently faced rejection at the $92.8k resistance level. ENA could follow a similar downward trajectory over the weekend, but for now, buyers seem to have regained some control.
Bullish Signals Despite Bearish Structure
The daily chart shows a bearish market structure, with ENA making lower highs and lower lows throughout 2025. The most recent lower high occurred at $0.48, and a daily close above that level could signal a shift in market structure.
Increased trading volume has been noted over the past few days, and the On-Balance Volume (OBV) has broken out past local highs, indicating growing buying interest. The Relative Strength Index (RSI) is also testing the neutral 50 level, further suggesting a potential momentum shift in favor of buyers.
Potential for Price Action and Range Formation
On the 4-hour chart, a range formation has emerged with resistance around $0.5. Currently, ENA is testing the $0.448 level within this range. Although bulls are fighting to push past this level, it remains unclear if they can break the $0.5 resistance anytime soon.
Despite the OBV breakout, traders should remain cautious. The bearish market structure on higher timeframes suggests that a breakout above $0.5 may not be imminent. A retest of the $0.48-$0.5 region could present a selling opportunity for those looking to take advantage of the bearish bias.
Liquidation Heatmap and Potential Reversal
The liquidation heatmap from the past month shows a strong concentration of liquidity between $0.48 and $0.515, indicating that the price may soon test this region. This liquidity cluster could act as a reversal zone, making it a crucial area for swing traders to watch.
A move above $0.515-$0.52 would invalidate the bearish outlook, and traders could set a stop-loss above this level. On the downside, the mid-range level at $0.412 and the lows around $0.34 remain key bearish targets.
Conclusion
Ethena’s price faces significant resistance at $0.5, and despite bullish momentum on lower timeframes, the overall market structure remains bearish. Traders should watch for potential tests of the $0.48-$0.515 range and consider selling on any retests of this area. However, a breakout beyond $0.52 could signal a trend reversal, invalidating the current bearish outlook.
