- Bullish pennant forms on the ENA chart, but the Long/Short Ratio of 3.94 and heavy liquidations threaten breakout stability.
- Sharp 80.77% drop in <$100 transfers shows retail exit, even as mid-tier whales continue transacting.
Ethena [ENA] formed a bullish pennant near the $0.38 resistance, following a series of higher lows and declining volatility.
This price structure typically precedes a breakout, especially when it forms after an extended rebound. However, a sudden 9.54% dip to $0.3525 challenged short-term bullish expectations.
Price remains above key support, but momentum is stalling. The market may require a catalyst to confirm a breakout above $0.40.
If bulls defend the $0.34–$0.35 zone, ENA may still ignite a rally. Otherwise, further downside toward $0.30 becomes a real possibility.
Source: X
Long dominance spikes, but risk of shakeout grows
On Binance, 79.77% of ENA traders remain long, with the Long/Short Ratio reaching 3.94. This overwhelming bias creates an unbalanced market that becomes vulnerable to sudden liquidations.
In fact, the 30th of May data showed $2.16 million in long positions liquidated, while shorts barely crossed $5K.
Therefore, while the price structure remains bullish, the aggressive positioning increases downside risk.
Source: CoinGlass
Is sUSDe yield draining capital from legacy DeFi protocols?
As reported by AMBCrypto, Ethena’s PT tokens have surpassed $1 billion in collateralized supply within just a month, attracting significant DeFi liquidity through high-yield incentives.
The approval of PT as accepted collateral on Aave has intensified competition, leading to concerns of a capital shift across protocols.
While PT adoption accelerates, Aave’s borrowing metrics show signs of stagnation. This divergence threatens protocol revenue and long-term token value for AAVE.
For ENA, the rapid ecosystem growth serves as a potential catalyst, but it also raises questions about liquidity fragmentation in the evolving DeFi landscape.
Address activity continues to slide despite price recovery
Despite ENA’s bullish consolidation, on-chain address metrics signal weak user engagement. New Addresses declined 41.54%, and Active Addresses fell 32.77% over seven days.
This suggests that network traction is not keeping up with price performance. Without renewed participation, the current uptrend may struggle to sustain.
Declining address activity often indicates lower organic demand and investor interest. Therefore, even if technical indicators appear favorable, weak fundamentals may delay any significant rally.
Source: IntoTheBlock
Mid-tier transactions are rising as small retail fades
Transaction data reveals a shift in participant behavior. Transfers in the $10K–$100K range surged 32.07%, and $1M–$10M transactions rose by 25%.
This suggests that whales and mid-size holders remain active in ENA’s ecosystem. Conversely, <$100 transfers plummeted by 80.77%, showing a retail retreat.
These dynamics imply conviction from strategic players, but weak grassroots participation. Sustained growth often requires a balance of both.
For now, mid-size support offers short-term strength, but ENA needs broader involvement to ignite a full-scale trend continuation.
Source: IntoTheBlock
ENA’s derivatives market shows early signs of cooling. Derivatives Volume fell 12.81% to $827.8M, while Open Interest dropped 5.60% to $442.7M.
Traders are stepping back, possibly anticipating volatility or more liquidations.
Can ENA break out amid weak fundamentals and DeFi rotation?
Despite its promising bullish pennant, ENA faces rising uncertainty. Derivatives metrics are weakening, address activity is down, and capital appears to be flowing toward Ethena’s sUSDe yields.
While mid-tier holders show support and long dominance remains high, overleveraged longs could become a liability. ENA must reclaim $0.38 with renewed volume and broader user growth to confirm the next bull leg.
Credit: Source link