Ethena (ENA) is currently consolidating just above a critical high-time-frame support zone, following a full range rotation from its recent highs. While the broader trend remains bearish, this price level has historically sparked counter-moves. If defended, it could pave the way for another rally within the established trading range.

Price Action Near Support Zone

As price action slows near support and liquidity builds beneath recent swing lows, traders should brace for potential volatility. The next move—whether a breakdown or a sharp rotation higher—depends on how ENA reacts to the key support level at $0.21.

Key Technical Points to Watch

  • Value Area Low: ENA is trading just above the value area low after completing a full rotation down from the range highs.
  • Key Support Zone: The $0.21 level is a major high-time-frame support located just beneath the previous swing low.
  • Bearish Structure: The 200-day moving average continues to act as dynamic resistance, limiting bullish attempts to break higher.

Range-Bound Trading Continues

On the 4-hour chart, ENA remains in a well-defined range. The recent rejection from the value area high confirmed a move back toward the value area low. Currently, the price is hovering just above this lower boundary, indicating the range structure remains intact for now.

The $0.21 support zone holds significant importance. Positioned just below the prior swing low, it aligns with long-term support levels. A brief dip below this zone to capture liquidity, followed by a strong recovery, could signal a bullish reversal—especially if supported by increased volume and momentum.

“A wick below $0.21, followed by a reclaim, may serve as a bullish trigger for a rotation higher.”

Challenges from the 200-Day Moving Average

Despite the potential for a bullish reversal, this scenario has not yet materialized. The 200-day moving average remains a significant hurdle, pressing down on the price and reinforcing the bearish structure. Unless ENA flips this moving average and breaks the structure convincingly, any upside is likely to remain confined within the current range.

Trading Strategies in the Current Market

For now, traders should focus on the oscillation between high-time-frame support and resistance. This range continues to offer rotational setups, providing opportunities for both short and long trades within the confines of the established levels.

  • A confirmed breakdown below $0.21 without a recovery could trigger further downside movement.
  • A strong reclaim above this level would suggest that buyers are stepping in to defend the trend.

What to Expect Next

ENA remains firmly within a defined trading range, with $0.21 acting as the critical level to watch. A clean bounce off this zone could lead to a rotation toward the range highs. However, if this support fails, expect heightened volatility and the potential for a continuation of the bearish trend.

For now, range trading remains the most likely scenario until the structure decisively breaks in either direction. Traders should monitor key support and resistance levels closely to capitalize on potential price movements.

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