On-chain data suggests that Ethena (ENA) faced major turbulence in the crypto market as two major whales unstaked a staggering 3.36 million tokens (worth $3.17 million) and deposited them into Binance.
This large-scale movement has fueled fears of an extended bearish phase for the digital asset, leading to increased selling pressure and a sharp decline in its price.
Market drop triggers whales to panic sell $ENA!
2 whales unstaked 3.36M $ENA($3.17M) and deposited to #Binance 1 hour ago.https://t.co/dk7j71susRhttps://t.co/CzETXnvYD9 pic.twitter.com/3SgggBBV1E
— Lookonchain (@lookonchain) December 26, 2024
Currently priced at $0.92, ENA has seen a consistent retreat over the past three days, coinciding with a notable rise in exchange balances. This aligns with the Head and Shoulders (H&S) pattern observed in its chart, a bearish signal suggesting further downside if the price breaches the neckline.
Technically speaking, ENA has descended to the 38.2% Fibonacci Retracement level, indicating diminishing buyer strength. The token has fallen below its 50-period moving average, reinforcing the bearish momentum. While tracing Murrey Math Lines, the token dipped below a key pivot reversal level, a sign of waning support among traders.
If the price falls below the critical H&S neckline at $0.85, analysts anticipate a plunge to the oversold zone of $0.59. It reflects a potential loss of over 30% from the current level.
The whales’ sell-off has amplified market jitters, with smaller holders likely to follow suit in a bid to mitigate losses. Traders are now closely monitoring the $0.855 support level, as a break below it could mark the onset of a steep downward trajectory.
The current instability of the ENA market shows that large token holders have a major influence. As the crypto community watches the fallout from this whale sell-off, the fate of $ENA depends on its ability to reclaim critical support levels.
Also Read: Will Ethena Price Hit $1.5? Whale Activity and Futures Boom Signal Potential