Ethena’s face-off: What’s next as whale accumulation meets overhead resistance at $0.10?

Ethena [$ENA] was down 3.9% in price in the past 24 hours, with a whopping 41% decline in daily trading volume. Though it appeared large, it is possible that the onset of the weekend spurred quieter market conditions and reduced volume.

It was reported that BitMEX co-founder Arthur Hayes bought 22.64 million $ENA, worth $2 million, over five days. A wallet linked to the Amber Group has bought 38.89 million $ENA, worth $3.58 million.

Yet, the exchange netflows remained weak, with more Ethena moving onto exchanges than leaving them. Weak demand meant the chances of a price move back above the $0.10 psychological barrier could be a challenge.

Lackluster $ENA buying pressure points toward a liquidity sweep

Source: $ENA/USDT on TradingView

The 1-day timeframe’s swing structure was bearish. The drop from $0.14 to $0.07 in May and June captured this structure. The Fibonacci retracement levels within this move (orange) represented the resistance levels overhead.

The $0.098 local high from mid-June was tested but not cleared during the most recent rally. Moreover, the OBV showed that the pressure from buyers and sellers was balanced.

This underlined the weak demand behind the altcoin. In these conditions, a rally to the Fibonacci retracement levels might not occur.

Instead, a sweep of the $0.098 highs, or just above the $0.10 round-number resistance, can be expected before a bearish move.

Traders’ call to action – Stay bearish

Source: CoinGlass

The conclusions from the price action are mirrored in the liquidation heatmap. It showed a dense cluster of short liquidations around $0.10. The rejection from this area in the past two days could see Ethena slide lower.

If the overhead liquidity is swept, it can offer an ideal short-selling opportunity. If not, $ENA can be expected to continue lower.

The next areas to watch would be $0.086 and $0.076. There is also a magnetic zone with many long liquidations at $0.07.

Final Summary

• The Ethena accumulation was not enough to send prices above the $0.10 round-number resistance.
• The attempted rally ended up resembling a failed breakout and a liquidity sweep, and more losses can be anticipated.

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