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The Ethena price surged over 11% in the last 24 hours to trade at $1.20 at press time.
The Ethena Price Challenging Resistance
4-hour chart for ENA/USDT (Source: TradingView)
In a recent technical analysis of the Ethena price on the 4-hour chart, significant movements have been observed that suggest a potentially bullish trend. The closing prices have seen an uptrend. This upward trajectory is underpinned by the Exponential Moving Averages (EMAs), with the 9 EMA values rising steadily from $1.0656 to $1.1198 and the 20 EMA also increasing from $1.014 to $1.0595. These EMA trends not only indicate a strong bullish momentum but also suggest that the price has been consistently above its short and mid-term moving averages, reinforcing the positive outlook.
The Moving Average Convergence Divergence (MACD) values further strengthen this bullish narrative. The MACD line has seen incremental increases.
The Relative Strength Index (RSI) has remained in the bullish territory, oscillating between 61.8 and 66.87. These values suggest a healthy buying interest without venturing into the overbought region, which could have signaled an imminent reversal.
From a strategic perspective, the $1.201 level emerges as a critical resistance point. A sustained break above this level could signal further bullish momentum towards uncharted territories. On the downside, the $0.879 level stands as a significant support, safeguarding against a bearish reversal. Should the price retreat, holding above this level is crucial to maintain the bullish outlook.
Potential Trade Strategies
For traders considering entry points, a consolidation above $1.201 could provide a strong basis for long positions, with potential exits aiming for new highs. Conversely, should the price fail to breach or sustain above this resistance, waiting for pullbacks towards significant support levels like $0.879 for long entries might offer favorable risk-reward setups. Short positions, although currently against the trend, could be considered if there’s a decisive break below $0.879, targeting further downside with tight stop-loss orders above this level to manage risk.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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