Ethena (ENA) is entering a critical consolidation phase after a strong late-August breakout, with crypto analyst Eliz highlighting the importance of holding current levels before another potential expansion. The analyst expects a healthier setup if ENA continues building structure above support, with $0.85 emerging as the next major upside target.
The recent move followed a prolonged consolidation period before ENA broke higher and pushed above several moving averages. The rally drove the token above $0.18000 before sellers returned and triggered a pullback toward $0.14916. ENA is now attempting to stabilize around a key technical area.
Source: Eliz’s X Post
Eliz noted that additional consolidation could strengthen the market structure rather than weaken the bullish outlook. According to the analyst, patience remains important while the token establishes a stronger base for its next directional move.
ENA Price Retests Key Moving Average Support
TradingView chart analysis shows ENA currently testing its red 20-day exponential moving average at approximately $0.15023. This level has become an important short-term reference after the token retraced from its recent high.
Several longer-term moving averages, including the 50-day, 100-day, and 200-day EMAs, remain positioned below the current price. Their presence provides additional layers of potential support if selling pressure increases.
Source: TradingView
The wider consolidation zone ranging from $0.13482 to $0.15023 plays a special role. The possession of the zone would be useful for maintaining the current positive market structure after the breakout. A failure to maintain the zone, on the other hand, would put ENA at risk of a more profound correction.
Also Read: Ethena Unveils 4 Changes as ENA Buyback Proposal Goes Live
Momentum Cools as ENA Builds Structure
Momentum indicators suggest that the explosive rally is losing some of its immediate strength. The 14-day Relative Strength Index has fallen from an overbought reading near 80 to 52.77, placing it close to neutral territory.
This doesn’t necessarily mean that the bullish pattern is broken. On the contrary, it shows that the market is shifting from the aggressive momentum mode to the consolidation one. In case ENA manages to retain its level of support and RSI remains stable, buyers will have a chance to build new momentum.
The strategy employed by Eliz also fits this description. According to the analyst, any retracement in the direction of the box marked above would present a good chance of a trade provided the price can confirm this. Future setups would thus be dependent on these two aspects.
Derivatives Show Cautious Trader Positioning
Coinglass data provides yet another insight into the existing state of affairs in the market. The derivatives trade volume for ENA went up 20.18%, totaling $634.97 million, indicating higher levels of activity in the market.
At the same time, there was a decrease of 16.25% in the number of open interests, which reached $359.17 million during the given time frame.
Source: Coinglass
This kind of positioning can play a role in ensuring that there is no extreme amount of leverage following the recent surge in price. However, from the information provided, it can be inferred that the traders have not reached the level of conviction when it comes to the next big move.
Ethena TVL Growth Supports Broader Outlook
Apart from price and derivative, the network fundamentals of Ethena keep demonstrating growth. Information provided by MSB Intel suggests that the total value locked for Ethena amounts to $4.90 billion, which is 4.6% higher compared to a week ago.
Source: MSB Intel’s X Post
The number has also grown by 15.6% within the past 30 days, signifying continuous growth in terms of capital investment into the ecosystem. The rising TVL sets the foundation for ENA amidst the anticipation by traders of its next big technical move.
For now, however, ENA is still at its decision-making stage. Staying within the range of $0.13482-$0.15023 can lead to consolidation being able to expand again; otherwise, it will weaken the pattern. In case the buyers become dominant again, the $0.85 mark that Eliz indicated may become an important target.
Also Read: Ethena Price Gains Momentum After Ethena Pay Launch
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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