Ethena (ENA) Testing Key Support After Major Decline – Will This Pattern Spark a Recovery?

Date: Sun, March 23, 2025 | 05:45 AM GMT

The crypto market is showing minor signs of a rebound as Ethereum (ETH) bounces back with a 4% weekly gain, giving altcoins some breathing room after months of selling pressure.

During this downtrend, Ethena (ENA) has taken a heavy hit, plunging over 66% in the last 90 days. However, as market sentiment gradually improves, ENA’s ongoing price action suggests that a recovery may be underway.

Source: Coinmarketcap

A Rounding Bottom in the Making?

ENA’s price has been in a steep decline since early January after facing rejection from its all-time high of $1.32. The aggressive sell-off sent the token crashing over 70%, eventually finding a base around the $0.33 level.

Ethena (ENA) Daily Chart/Coinsprobe (Source: Tradingview)

After weeks of consolidation, the current price action suggests that ENA may be forming a Rounding Bottom pattern, a classic reversal formation that often marks the transition from a bearish phase to a new bullish trend.

Will This Pattern Spark a Recovery?

For this pattern to fully play out, ENA must break through its overhead resistance zone, particularly around the 50-day moving average. A decisive move above this level would validate the rounding bottom and open the door for a much larger recovery. Historically, when assets complete this pattern, the upside target often extends toward previous highs, meaning ENA could aim for the $1.30 region in the coming months.

Adding to the bullish case, the MACD indicator is showing early signs of a bullish crossover, suggesting that selling pressure is weakening. If buying volume increases in the coming days, it could further confirm the shift in momentum and reinforce the idea that ENA is entering a recovery phase.

Final Thoughts

ENA appears to be at a turning point, with the rounding bottom pattern signaling a potential trend reversal. A breakout above key resistance, particularly the 50-day MA, could ignite a strong rally toward previous highs. However, failure to hold support this zone may lead to further downside. Traders should watch price action closely as momentum builds.

Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before making any investment decisions.