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The Ethena price plummeted over 5% in the last 24 hours to trade at $0.7912 at press time.
The Ethena Price Testing Support
4-hour chart for ENA/USDT (Source: TradingView)
In the recent trading sessions, the Ethena price has shown notable movements on the 4-hour chart, where the closing prices observed a downward trajectory from $0.883 to $0.794. This indicates a clear short-term bearish trend as prices dipped below both the 9 and 20 Exponential Moving Averages (EMAs).
As of the latest data, the 9 EMA values are showing a decreasing pattern, moving from $0.851 to $0.825, which reinforces the bearish momentum. Similarly, the 20 EMA also confirms this downtrend, descending gradually from $0.858 to $0.842. When the price is below these moving averages, it generally suggests that the bears have control, thus discouraging bullish entries unless a trend reversal signal appears.
The Moving Average Convergence Divergence (MACD) further substantiates this outlook. The MACD line has remained below the signal line across the last few sessions, although the histogram values are closing in towards zero, which can sometimes precede a potential shift in momentum. Currently, the histograms are narrowing, suggesting a reduction in downward momentum, albeit still in a bearish phase.
The Relative Strength Index (RSI), which measures the speed and change of price movements, has hovered close to the 40 mark recently, indicating a weak momentum but not yet oversold. The values ranged from 53.28 down to 36.67, reflecting increasing bearish pressure.
Key Levels to Watch
Looking at potential movements, if ENA can break past the $0.901 resistance, it may test further resistances at $1.019 and eventually $1.105. However, the current technical setup advises caution as the primary trend is bearish.
For traders, considering entry and exit points:
– Short trades could be considered at rallies near the 9 EMA or 20 EMA, using the recent high as a potential stop-loss level.
– Long trades might be premature under the current conditions unless a solid reversal pattern is observed near key support levels, such as $0.792. An ideal bullish scenario would be a clear close above the 20 EMA with supporting volume.
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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