Etna [ENA] increased by 36% – will the next target of $0.46 be broken?
The emergence of Etna as a leading weekly performer indicates optimism, but some factors may weaken its long-term outlook.
Etna has made a significant comeback, rising 36% in just over a week and ranking among the top weekly performers.
- While the current movement is upward, Oxichange recommends exercising caution.
Ethena [ENA] was launched six months ago at an ICO price of $0.57, reaching $1.46 in the first week. Since then, it has faced a downward trend.
However, in mid-September, we witnessed ENA surpass its previous resistance level, reaching $0.413—a 36% increase in just one week.
According to an AMBCrypto report, ENA’s next milestone is to retest the $0.46 resistance, contingent on maintaining the upward trend.
Etna Offers New Developments
Ethereal Exchange has proposed integrating its DEX into the Ethena hedging engine, creating excitement in the market, evident in ENA’s 10% increase over the past 24 hours.
If approved, ENA holders will receive 15% of any Ethereal governance tokens.
This essentially allows Ethereal DEX to manage spot positions and derivatives based on USDe, Etna’s native stablecoin, which is expected to play a role in future developments.
Source: IntoTheBlock
Interestingly, a significant cluster of holders with net losses constitutes 85% of the total ENA allocation.
According to AMBCrypto, this concentration indicates that most investors are at a loss and are potentially waiting for a reversal or key developments to regain value.
Therefore, while Etna’s upcoming roadmap could enhance liquidity in the network, it may not be able to sustain an upward increase unless…
Large Holders Support These Proposals
Since Bitcoin’s downturn in late August, Ethena has experienced a similar retreat, primarily due to selling by large shareholders.
Notably, whales—who make up 85% of this group and hold about 13.45 billion ENA—have been consistently selling portions of their assets.
However, in the past week, net outflows from these holders have been increasing daily, reaching around 12 million just two days ago.
Source: IntoTheBlock
This indicates that these whales directly influenced the recent 36% increase in ENA, and their accumulation began as Etna reached its market lows.
While this is a bullish sign, if these whales start selling again, a reversal could occur.
Caution is Advised
In the past seven days, speculative trading of Etna has been driven by traders shorting ENA.
Historically, the first week of September has also seen a dominance of short markets, pushing Etna down to seek support at $0.19.
Source: Coinglass
However, despite the increase in shorts, they could not initiate a retreat as whale activity absorbed most of the pressure—creating an ideal scenario for a short squeeze.
However, if the market succumbs to Bitcoin’s downward volatility and whales lose confidence in future gains, a resurgence of short positions could weaken the upward trend and lessen the impact of the recent announcements.
Therefore, investors should exercise caution. While the latest proposals have attracted investor interest, much of the influence remains with large holders.
According to AMBCrypto, monitoring their activity is crucial for bringing Ethena closer to its previous resistance at $0.46.
