Ethena price is testing a critical $0.65 support zone as strong on-chain fundamentals clash with fading short-term momentum.
Summary
- Ethena reports $500 million in cumulative gross interest revenue as USDe supply hits record $11.7 billion.
- ENA faces 10% weekly decline but strong exchange outflows hint at accumulation.
- Technical outlook mixed as ENA tests $0.65 support zone.
Ethena (ENA) price stood at $0.6601 at the time of writing, down 10% on the week but holding flat on the day. Despite the pullback, ENA remains up 32% over the past month, reflecting resilience against broader market swings.
Derivatives have also seen a decline in activity. CoinGlass data shows that ENA’s open interest fell by slightly more than 3% to $1.26 billion, while its derivatives trading volume decreased by nearly 27% to $1.48 billion over the last day.
This implies less speculative positioning, which is often an indication that traders are de-risking and holding off on reentering the market until a trend is clearer.
Ethena crosses $500M revenue as USDe supply hits record high
Ethena reported on Aug. 21 via X that it has surpassed $500 million in cumulative gross interest revenue. In the past week alone, the protocol generated $13.4 million in revenue, while Ethena USDE (USDe) mints rose by 670 million, pushing supply to a new all-time high of $11.7 billion. Yields remain strong, with sUSDe APY hovering around 9%.
According to DefiLlama data, the protocol’s total value locked has almost doubled in recent weeks, from about $5.5 billion in July to $11.9 billion as of press time. USD inflows have also increased, with $2.9 billion entering in July and more than $3.5 billion already recorded this month, as of of Aug. 22.
Meanwhile, investor behavior in ENA markets appears to be changing. 140 million ENA tokens have been removed from exchanges in the last four days, as per an Aug.22 post on X by analyst Ali Martinez.
This move is often seen as an indication that holders are moving their holdings to long-term storage rather than getting ready to sell. If maintained, this pattern can reduce immediate sell pressure and improve price stability.
Ethena technical analysis
On the daily chart, Ethena is positioned around a crucial test at the $0.65 support level. The narrowing Bollinger Bands indicate compressing volatility and a possible breakout, while the token’s position close to the lower band indicates short-term oversold conditions and the possibility of a rebound if buyers step in.
Momentum indicators draw attention to uncertainty. While the MACD has turned negative, suggesting waning bullish momentum, the relative strength index is at 51, indicating neutrality. The 10- and 20-day EMAs are leaning bearish, pointing to impending pressure. Longer-term supports, like the 50- and 100-day averages, are still in place, though, suggesting that ENA is still on an uptrend.
ENA may move toward $0.70 if it recovers above $0.65, and bullish prospects would be strengthened if it broke above $0.74. However, if support is not maintained, there is little protection against a decline to $0.62, the lower limit of its recent range.
