Ethena price reverses as whales dump, exchange balances rise

The Ethena price has declined for three consecutive days as exchange balances continue to rise and whales sell their tokens.

The Ethena (ENA) token fell to $0.95, falling below the psychologically important level of $1 for the first time since December 20.

The ongoing collapse is due to risk-aversion sentiment in the crypto industry, which has caused Bitcoin (BTC) and other prices to fall.

The same happened when on-chain data showed whales selling their tokens. The largest transaction occurred when a whale sent 11.6 million ENA tokens worth $11 million to the largest crypto exchange, Binance. In another transaction, a trader moved $10.7 million worth of ENA tokens to Binance.

Ethena whales sold $30 million worth of tokens on Thursday, December 26. These sales come a week after Bitmex founder and former investor Arthur Hayes sold some of his ENA tokens. According to Nansen, Hayes currently has 18,616 coins worth $17,458.

Ethena price has also fallen as tokens on exchanges continue to rise, indicating a popular bearish trend. These tokens have increased by 5.82% to over 730.27 million in the last seven days. Total supply on exchanges increased by 0.27% a week ago to 4.87%.

Ethena currency balances | Source: Nansen

Meanwhile, inflows to Ethena’s USDe stablecoin have stopped. The market value of the cryptocurrency is $6 billion, which is a sign that demand has slowed down over the last few days.

Ethena USDe stablecoin | Source: DeFi Llama Ethena price analysis ENA price chart | Source: crypto.news

Technicals suggest that Ethena may have further declines as it forms a head and shoulders formation on the four-hour chart. This model consists of a collar, two shoulders and a head, $0.8552. In most periods, the pattern leads to strong downward momentum when it moves below the neckline.

Ethena also rose to the 38.2% Fibonacci Retracement level and broke below the 50-period moving average. It also broke below the strong pivot reversal level of the Murrey Math Lines.

Therefore, the token will likely continue to decline and the immediate target will be H&S’ neckline at $0.8552. A decline below this level would signal further downside, potentially towards the oversold level of $0.5860.

Disclosure: This article does not constitute investment advice. The content and materials on this page are for educational purposes only.