Ethena price drops 8% to key support despite Coinbase listing hype

Ethena’s price is now testing a crucial $0.30 support level as over $50 million worth of ENA tokens are being unleashed into the open market. Will this support hold?

After a brief bounce from the $0.28 low to $0.35, Ethena (ENA) price has now reversed again, currently trading around $0.30, with the 24-hour trading volume at $245 million, up by 15%. The $0.30 level is now a critical support level as Ethena is releasing $52.97 million worth of tokens over the next seven days.

The strength of this support level will likely be instrumental in determining whether the selling pressure from this unlock pushes ENA back down toward the previous key level around $0.25.

The good news is that the $0.30 level served as the launchpad for an explosive 100%+ rally to $0.67 in November last year. This suggests there is significant buying interest at this price point, which could help absorb the selling pressure from over $50 million worth of ENA tokens about to be unleashed into the open market. If this support holds, ENA will likely stabilize here or even rebound. However, if ENA price slides below $0.30, there is a risk of further breakdown to $0.25.

Taking the whole context into account, including the upcoming Coinbase listing of ENA and other positive developments in the project—most notably Ethena Labs’ partnership with Securitize to launch Converge — it’s unlikely ENA will break below $0.25. Plus, ENA price only dipped below that level once, hitting its all-time low of $0.19 in September last year, which suggests that $0.25 has proven to be a strong floor.