Ethena’s Dramatic Plunge: Will This Zone Save the Day? 😱

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  • Oh dear! ENA has taken a nosedive of 19% in a single day, erasing recent gains and landing with a thud near the $0.30 mark. How utterly tragic! 🎭
  • But wait! TVL has gallantly climbed to $5.426 billion, with a delightful $722 million added in May, proving that liquidity is still the belle of the ball. 💃

In the past 24 hours, Ethena [ENA] has outdone itself by recording the highest loss among crypto tokens, a staggering 19%. Bravo! 👏

However, a silver lining appears as trading volume has begun to decline by 13%, suggesting that perhaps, just perhaps, the selling pressure is easing. How quaint! 🧐

Amidst this delightful chaos, a surge in liquidity and the presence of a key demand zone have served as attractive points, but alas, sellers remain ever so active, threatening a potential rebound. How rude! 😏

Why has ENA plunged?

ENA’s recent drop has wiped out investors’ gains from the past month, with a 4.84% decline. At the time of writing, it seems this drop has been largely driven by the rather dramatic activity in the derivatives market. How scandalous! 😲

According to CoinGlass, ENA’s Open Interest Weighted Funding Rate has turned negative for the first time in 10 days. A bearish flip in derivative sentiment? How positively dreary! 😩

On top of that, the Long-to-Short Ratio has slipped to 0.8619—meaning sell orders have outpaced buy contracts. Such an imbalance often precedes more downside unless quickly corrected. How predictable! 😒

If these metrics continue to decline, ENA will likely face further price drops. How shocking! 🙄

Liquidity inflow into ENA remains high

Notably, the decline may be nearing its end as two major bullish confluences emerge. How delightful! 🎉

AMBCrypto analysis found that ENA has consistently recorded liquidity inflows, as indicated by the total value locked (TVL). A true testament to resilience! 💪

TVL represents the total on-chain value held within a protocol. How very technical! 🤓

Per DeFiLlama, TVL was $5.426 billion at press time, with $722 million staked or purchased in May alone. Quite the haul! 💰

That’s not all, dear reader. ENA recently traded into a key Fair Value Gap (FVG) demand zone—highlighted by the rectangle on the chart. How very strategic! 🗺️

Interestingly, it reached the midpoint of this FVG demand zone, marked at $0.3044, a level that has historically triggered the start of a rally. How promising! 🌟

If momentum builds from this level, ENA could gain 34%, potentially reclaiming the $0.4080 mark. How optimistic! 🤞

Will this be a free rally?

Of course, upside won’t come easily. How predictable! 😏

The In/Out of the Money Around Price (IOMAP) metric showed that the rally will face resistance, with ENA likely to encounter major obstacles ahead. How thrilling! 🎢

The metric showed that between $0.313 and $0.327, the asset is likely to encounter heavy selling pressure, totaling 253 million ENA. Quite the hurdle! 🏃‍♂️

That’s a heavy resistance cluster and could prompt more sell pressure on the way up. How unfortunate! 😩

To add to this, the Liquidation Heatmap reveals a dense band of unfilled contracts around $0.32, setting up a potential rejection if buyers stall. How dramatic! 🎭

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2025-05-31 19:07