Ethena (ENA) is currently testing a critical support level at $0.65, with traders watching closely to see whether the token can hold its ground. At the time of writing, ENA was priced at $0.6601 down 10% over the past week but holding steady on the day. Despite the pullback, the token remains up 32% in the past month, showing resilience even as short-term momentum fades.
On the derivatives side, activity has cooled off. According to CoinGlass, open interest in ENA slipped just over 3% to $1.26 billion, while daily trading volumes fell nearly 27% to $1.48 billion. That decline suggests traders are de-risking, waiting for clearer signals before reentering the market.
Fundamentals Remain Robust
While the price has struggled, Ethena’s fundamentals are telling a different story. On August 21, the project announced it had generated more than $500 million in cumulative gross interest revenue. In just the last week alone, Ethena raked in $13.4 million.
At the same time, Ethena’s USDe stablecoin supply has surged to an all-time high of $11.7 billion, thanks to a fresh 670 million tokens minted in the past week. Yields are still attractive, with sUSDe offering around 9% APY.
DefiLlama data shows Ethena’s total value locked (TVL) has almost doubled in recent weeks from $5.5 billion in July to $11.9 billion as of August 22. Inflows remain strong, with $2.9 billion entering in July and another $3.5 billion already this month.
Adding to the bullish picture, exchange data reveals that 140 million ENA tokens have been pulled from trading platforms in just four days, according to analyst Ali Martinez. When tokens leave exchanges, it often signals long-term holding rather than imminent selling, which can help reduce selling pressure and stabilize prices.
Technical Outlook: Testing Key Levels
On the charts, ENA is sitting right at its $0.65 support zone. Bollinger Bands are narrowing, suggesting a breakout could be coming, while ENA’s proximity to the lower band hints at oversold conditions often a setup for a rebound if buyers step in.
Momentum signals are mixed, however. The MACD has flipped negative, showing weakening bullish momentum, while the RSI is sitting at 51, reflecting neutrality. Short-term EMAs (10-day and 20-day) lean bearish, signaling pressure, but the longer-term supports from the 50- and 100-day averages remain intact keeping the broader uptrend alive.
If ENA can stay above $0.65, a rebound toward $0.70 looks likely, with a break above $0.74 further strengthening the bullish case. But if $0.65 fails, the next support lies around $0.62, marking the lower end of the recent trading range.
The Bottom Line
Ethena may be under short-term pressure, but the fundamentals continue to strengthen, from revenue growth to record-breaking USDe supply and strong token outflows from exchanges. For traders, the $0.65 level is the key to watch holding it could set the stage for another leg higher, while a breakdown risks opening the door to deeper losses.
