Is Ethena Facing Extinction? ENA Plunges 17% in Just One Week
Ethena's ENA token faces brutal selling pressure as confidence wavers amid broader market turbulence.
Market analysts point to deteriorating technical indicators and weakening fundamentals as the project battles existential questions.
The 17% weekly decline reflects growing investor skepticism about synthetic dollar protocols' sustainability during crypto winter conditions.
While some see this as typical crypto volatility, others whisper about another 'stablecoin experiment' joining the graveyard of ambitious DeFi projects that promised financial revolution but delivered mostly exit liquidity.
LATEST: JPMorgan now expects the Fed to cut rates four times in 2025, starting as early as September and bringing the benchmark down to 3.25%â3.5%.Wall Street is bracing for a full easing cycle â bullish fuel for risk assets and Bitcoin. pic.twitter.com/Ahykvridtk â CryptosRus (@CryptosR_Us) August 17, 2025
Ethena Down But Not Out
Coinglass derivatives data shows speculative demand for ENA fading, with open interest down over 18% over the past 7 days as derivatives traders MOVE to the sidelines.
That said, those still active in the market are positioning for upside, with a long/short ratio of 2.93 on Binance showing more than 74% of traders longing the ENA price.
Meanwhile, prominent whales are buying-the-dip. Lookonchain reports that crypto billionaire Arthur Hayes pulled a 180 on a 7.76 million ENA token dump, buying back higher around its August 11 peak.
Two weeks ago, Arthur Hayes(@CryptoHayes) sold 7.76M $ENA ($4.62M) at ~$0.595 to lock in a $1.65M profit.
Recently, he bought back 2.14M $ENA($1.75M) at a higher price of $0.816.https://t.co/1HymJRPhcj pic.twitter.com/COZNMeBpvF
Hayes has since doubled down, bringing the total accumulated to 3.1 million ENA on August 15 after the altcoin started to correct, a testament that the Ethena Price bull run is not over yet.
ENA Price Analysis: Is Ethena Going to Zero?
The bull run may not be over just yet, with ENA flashing a potential cup-and-handle on the daily chart, a classic bullish continuation pattern.
The key breakout threshold sits at $0.85, the resistance that capped Ethenaâs most recent rally.
While Ethena has found support at the $0.68 0.618 Fibonacci level, a common bottom marker for sharp reversals, though momentum indicators are mixed.
The RSI is holding above the neutral 52 zone, hinting that selling pressure may be cooling as bulls look to retake control.
Yet, the MACD continues to widen below the signal line after a recent death cross, signaling that the downtrend still carries weight.
If $0.68 is lost as support, the correction may extend to the next historical support level around $0.51 as the bottom for the handle.
A credible scenario with the September FOMC meeting still 29 days away. Potential rate cuts remain distant, leaving ENA without a near-term catalyst for demand to halt the decline.
When demand returns, a breakout opens the doors for a retest of the all-time high around $1.32, and a push into new price discovery targeting $3.25 for a potential 400% gain.
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