Ethena appears to be exhibiting early indications of a bullish reversal, as its price patterns are starting to resemble past accumulation stages. There’s a possibility of a double bottom formation at a crucial support level, and surpassing the $0.50 resistance level might signal the commencement of a fresh uptrend that could lead to higher Fibonacci targets in the long term.
On Ethena (ENA), the present market configuration indicates that the asset is experiencing an accumulation period. This is substantiated by both technical indicators and striking parallels to past price trends. The price has revisited a region of historical significance, where a rounded bottom appears to be developing. Previously, this area functioned as a foundation for a significant bullish surge, and it now seems poised to foster a similar uptrend.
Key technical points
- Double Bottom Formation in Progress: Price action is forming a clear double bottom pattern, often a precursor to trend reversals.
- $0.50 Resistance Is Key: A break above this high-timeframe level could confirm bullish intent and open the path toward higher resistance.
- Accumulation Range Intact: Ethena continues to trade in a sideways structure between key support and resistance levels.
Ethena appears to be in an extended phase of consolidation, as seen from both technical and structural perspectives. The current trading price is confined within a distinct accumulation range, sandwiched between robust support and resistance levels. This situation seems reminiscent of a past bottoming trend, where the price contracted before making a significant breakout.
In other words, there’s a potential double bottom pattern emerging here, characterized by two gentle lows and a neckline around $0.50. This level acts as the last hurdle before confirming the reversal trend. If the price manages to surpass $0.50 with substantial volume and sustained momentum, it would bolster the bullish argument and potentially propel the price toward the 0.618 Fibonacci retracement level from the broader downtrend.
Currently, we’re in a period where everyone seems to be holding their breath, waiting for significant developments. Since there hasn’t been a clear breakout yet, it looks like the trading will stay within certain limits until the bulls build enough strength to test the resistance. Even though things appear to be slowing down, the overall structure still looks promising with no indications of imminent collapse. In fact, various technical indicators suggest that accumulation is ongoing.
What to expect in the coming price action
If Ethena surpasses and maintains itself above the $0.50 resistance point, it will signal a confirmed double bottom and potentially initiate an upward trend aiming at approximately the 0.618 Fibonacci level. For now, the market is likely to experience more accumulation and sideways movement as it prepares for its next substantial action.
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2025-06-10 20:56