Ethena (ENA) Price Retreats for Three Consecutive Days as Exchange Balances Continued Rising and Whales Sold Their Tokens

Ethena (ENA) token dropped to $0.95, moving below the psychologically important level of $1 for the first time since Dec. 20.

Ethena (ENA) price dropped on Thursday, Dec. 26, continuing a three-day losing streak as exchange balances rose and on-chain data showed whale activity. The ENA token slid to $0.95, dropping below the key psychological level of $1 for the first time since Dec. 20.

The latest decline in Ethena price comes amid a risk-off sentiment in the crypto market, which saw Bitcoin (BTC) and other major crypto prices trading lower.

However, Ethena’s crash was also impacted by whale activity, as several large transactions involving the token were observed. According to data from IntoTheBlock, Ethena whales sold a total of $30 million worth of tokens on Thursday.

The largest transaction occurred when a whale sent 11.6 million ENA tokens, valued at $11 million, to Binance, the world’s biggest crypto exchange by trading volume. In another transaction, one trader moved ENA tokens, valued at $10.7 million, to the Binance exchange.

Overall, Ethena whales sold about $30 million in tokens on Thursday, continuing a trend of selling that began last week. Notably, Arthur Hayes, the founder of Bitmex and an early investor in Ethena, sold some of his tokens last week.

According to data from Nansen, Hayes now owns 18,616 coins, down from 25,000 coins earlier this month. At the current Ethena price, Hayes's 18,616 coins are valued at $17,458.

Ethena price was also impacted by a rise in tokens on exchanges, which is typically viewed as a bearish indicator. These tokens increased by 5.82% in the last seven days to over 730.27 million. Total supply on exchanges moved to 4.87%, up by 0.27% a week ago.

Meanwhile, inflows into Ethena’s USDe stablecoin have stalled. The coin has a market cap of $6 billion, where it has been in the past few days, a sign of sluggish demand.

Ethena Price Analysis

Technical analysis suggests that Ethena price may have more downside potential in the short term. The token has formed a head and shoulders pattern on the four-hour chart, indicating a potential bearish trend.

This technical pattern consists of a neckline, which is currently at $0.8552, two shoulders, and a head. Typically, the pattern leads to a strong downward momentum when it moves below the neckline.

Moreover, Ethena price has slipped to the 38.2% Fibonacci Retracement level and dropped below the 50-period moving average. It also fell below the strong pivot reverse level of the Murrey Math Lines.

Therefore, the token will likely continue falling, with the immediate target being the H&S's neckline at $0.8552. A drop below that level will point to more downside, potentially to the extremely oversold level of $0.5860.

It's important to note that this analysis is based on technical indicators and may not fully capture all the factors influencing Ethena price movements.

This article does not represent investment advice.