Ethena [ENA]: Facing Pressure – Will Sellers Drive the Price Down to $0.1315?

Ethena (ENA) is currently under significant market pressure following a substantial deposit by a major holder, which has introduced notable sell-side liquidity. This selling wave has led to an estimated $15 million loss for the holder, resulting in continued price weakness. While buyers are attempting to absorb selling pressure, a key support level at $0.1315 remains at risk. The market shows signs of consolidation, but sellers still dominate the trend direction.

Key Takeaways

Ethena (ENA) is experiencing intense selling pressure after a large holder deposited a significant amount of ENA into Coinbase Prime.
The price has been trading between $0.14 and $0.15, reflecting a downturn of over 60% from mid-cycle highs.
Market indicators suggest absorption of selling pressure by buyers, although they have yet to regain control of the trend.
Key support is found at $0.1315, and a reclaim of resistance near $0.165 is needed to shift the current bearish narrative.

Ethena [ENA] under pressure – Will sellers force one last drop to $0.1315?

Ethena's Current Market Context

Ethena faces ongoing pressure with a recent deposit of 16.86 million ENA into Coinbase Prime, causing substantial liquidity on the sell side. This transfer accounts for an estimated loss of $15 million, aligning with a cost basis of $18.53 million—a decline of approximately 81%. As a result, ENA's price stabilized around $0.14–$0.15, levels not observed for several months.

Notably, price fluctuations remained orderly following this deposit, indicating that market participants may have anticipated this move. However, the realization of significant losses points to weariness among holders rather than confidence in the asset. Many investors find themselves with unsustainable positions, heightening the likelihood of distribution during any potential price rally.

ENA price action analysis Source: TradingView

Analyzing Price Consolidation

Ethena continues to follow a descending channel that has guided prices lower since falling from the $0.30 region. Currently, the price action suggests a period of consolidation near the upper boundary of this channel. However, the overall structure still favors sellers, with the Relative Strength Index (RSI) sitting below 40, indicating weak momentum.

There's potential for ENA to pull back toward the $0.1315 support zone, which aligns with previous lows and symmetry within the channel. This level serves as a critical structural checkpoint. A strong move above resistance around $0.165 could disrupt the ongoing pattern of lower highs, but ENA has yet to achieve this level. Consequently, the market remains reactive, with buyers trying to defend key price levels while sellers maintain control of the trend until there is a decisive structure shift.

What Is Absorbing the Downside?

Despite the ongoing weakness in price, the 90-day Spot Taker Cumulative Volume Delta (CVD) remains net positive, indicating continued buyer activity even during market declines. This divergence is crucial; ENA has dropped over 60% from its mid-cycle highs, yet buyer absorption of sell pressure suggests accumulation rather than panic selling.

However, this demand appears more defensive than proactive. Buyers are stepping in to slow down further declines, but they have not initiated a meaningful structural change in the market. Historically, while such divergences can weaken bearish pressure, they do not guarantee a price reversal. As long as the CVD remains positive, the strength of downside momentum is likely diminished. Nevertheless, without reclaiming resistance, mere accumulation won't be enough to change the prevailing trend.

Source: CryptoQuant

Changes in Funding Rates

The Open Interest-Weighted Funding Rate has recently shifted from around -0.01% to approximately +0.005%, indicating a shift in trader leverage bias. This change has occurred following a significant long-side flush, resulting in a drop in Open Interest to the $55–$60 million range. Positive funding means traders are now paying to hold long positions, although overall conviction remains cautious.

Current funding rates are shallow, suggesting that traders are positioning themselves strategically rather than committing to strong directional bets. By keeping leverage low, the risk of cascading liquidations during further downward movements is mitigated. Nevertheless, this funding shift does not imply strong expectations for a breakout in price; rather, it represents a market striving for balance.

Source: CoinGlass

Understanding Short-Side Liquidity

The Binance ENA liquidation map reveals significant concentrations of short liquidation leverage set above the current price of roughly $0.20, particularly between $0.205 and $0.22, where cumulative short liquidation exposure exceeds $5 million, heavily influenced by 25x and 50x leveraged positions. In contrast, there are fewer long liquidation exposures below $0.18, creating an imbalance.

This distribution indicates that recent positioning has favored short continuation bets, leading to a greater number of forced liquidations in the event of upward price movement into the $0.205–$0.22 range than any downward move. As such, the map provides insights into an asymmetric liquidity profile rather than definitive directional confirmation.

Source: CoinGlass

In conclusion, Ethena (ENA) seems inclined towards further downside movement, likely testing the critical support at $0.1315 before any significant rebound occurs. Buyers have managed to absorb some selling pressure but have not yet regained momentum in the market. Unless there is a surge in demand before reaching this support level, the risk of a downward trend remains. A credible recovery will only emerge if ENA can maintain its position above $0.1315 and reclaim channel resistance while generating increased market participation.

Key Takeaways

Ethena's Current Market Context

Analyzing Price Consolidation

What Is Absorbing the Downside?

Changes in Funding Rates

Understanding Short-Side Liquidity

Final Thoughts