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Ethena is showing early signs of a bullish reversal as its price action begins to mirror previous accumulation phases. A potential double-bottom pattern is forming near key support levels, and a breakout above the critical $0.50 resistance could signal the start of a new upward trend. This move might pave the way for higher time-frame Fibonacci targets, offering promising opportunities for traders and investors.

Current Market Structure Suggests Accumulation Phase

The market structure for Ethena indicates that the asset is currently in an accumulation phase. This is supported by technical indicators and fractal similarities to earlier price action. Price has returned to a historically significant zone where a rounded bottom appears to be forming. This zone previously acted as the base for a major bullish expansion and may now be setting the stage for a similar upward move.

Key Technical Points

  • Double-Bottom Formation: Price action is showing signs of a double-bottom pattern, a common precursor to trend reversals.
  • Critical $0.50 Resistance Level: A breakout above this level could confirm bullish momentum and open the path to higher resistance zones.
  • Sideways Accumulation: Ethena continues to trade in a well-defined range between strong support and resistance levels, signaling potential accumulation.

Technical Analysis of Ethena’s Price Action

From a structural standpoint, Ethena is undergoing a prolonged consolidation period. The price is trading within a clearly defined accumulation range, positioned between strong support and resistance zones. This setup closely resembles a previous bottoming pattern, where price coiled before a decisive breakout.

A double-bottom pattern is currently developing, characterized by two rounded lows and a neckline around the $0.50 region. This level is a critical barrier, and a breakout above it, accompanied by strong volume, could confirm the reversal structure. Such a move would validate the bullish outlook and potentially drive the price toward the 0.618 Fibonacci retracement level, calculated from the broader downtrend.

What to Expect in Upcoming Price Action

If Ethena successfully breaks and holds above the $0.50 resistance level, it would confirm the double-bottom pattern and likely trigger a rally toward the next significant target near the 0.618 Fibonacci level. Until this breakout occurs, range-bound trading and continued accumulation are expected as the market builds strength for its next major move.

While current price action remains in a “wait-and-see” phase, the overall market structure is constructive. There are no indications of a breakdown, and multiple technical signals suggest that accumulation is ongoing. This could provide traders and investors with a favorable setup to monitor closely in the coming days.

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