Ethena's Wild Ride: Price Prediction, Flash Crash, and the Road to Recovery

Ethena (ENA) has seen dramatic price swings. We analyze the recent flash crash, institutional buying, and potential future price movements.

Ethena's Wild Ride: Price Prediction, Flash Crash, and the Road to Recovery

Ethena (ENA) has been making waves with its price volatility and recovery. Let's dive into what caused the recent flash crash, how institutional buying fueled a rebound, and what the future might hold for ENA.

ENA's Flash Crash and Swift Recovery

Earlier this month, Ethena experienced a significant flash crash, plummeting to $0.14 on October 10, 2025. This triggered liquidations across major exchanges, creating panic among traders. However, the dip didn't last long. Institutional investors quickly stepped in, buying up ENA and driving its price nearly 200% higher from its lows.

Analysts note that this rapid rebound demonstrates strong underlying demand for ENA, even amidst volatility. As long as ENA holds above key support levels, there's potential for further upside. Currently, ENA trades around $0.46, showing a 2.65% gain after testing a short-term trendline support near $0.40.

Technical Levels and Price Targets

Traders are closely watching ENA's Fibonacci support and demand zones. Entry bids are recommended around $0.458, with stop-loss orders placed slightly below recent lows to manage risk. The immediate price target lies between $0.50 and $0.52, aiming to fill a fair value gap.

According to analysts, a break above the $0.65 horizontal resistance could pave the way for a rally towards $1.30 and potentially $1.51 if momentum continues. However, failure to breach this resistance might lead to consolidation or a retest of support near $0.20.

Institutional Buying and Ecosystem Growth

Institutional accumulation has been a major driver of ENA's recent performance. Rising network fees, steady funding rates, and a robust total value locked (TVL) underscore the growing strength of the Ethena ecosystem. Even with a 25% decline in TVL from its all-time high, ENA retains significant market trust, outperforming many altcoins.

Ethena's cumulative fee revenue recently hit $578 million, reflecting increasing activity on the protocol. This growth is partly attributed to the adoption of Ethena's stablecoin, USDe, which has seen rising user engagement.

Ethereal DEX and ENA's Token Economy

The Ethena community approved Ethereal, a spot and perpetual futures DEX, which recently launched its mainnet alpha. Ethereal aims to be the