Ethena (ENA) Secures $100 Million Investment from Leading Financial Institutions

Ethena (ENA) has shown significant corrective movement after reaching an all-time high, forming a descending wedge structure indicative of a potential reversal. The latest price action suggests that the asset may have completed its corrective phase, setting the stage for a new bullish cycle.

Using Elliott Wave analysis and Fibonacci retracement levels, we will assess whether ENA is primed for recovery and what key levels traders should monitor in the coming sessions.

Ethena Secures $100 Million Investment

Ethena Labs has successfully raised $100 million through a private sale of its ENA tokens, attracting investments from prominent financial entities including Franklin Templeton, F-Prime Capital, Dragonfly Capital Partners, Polychain Capital, and Pantera Capital.

This substantial funding is earmarked for the development of a new token tailored for traditional financial institutions and the establishment of Ethena’s proprietary blockchain. Ethena’s digital asset portfolio features the ENA governance token and the USDe stablecoin, a synthetic dollar-pegged asset that achieved a $1.3 billion supply during the Ethena Shard Campaign.

In response to market volatility, the company introduced USDtb, a stablecoin backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), holding 90% of its reserves in the fund. Despite a recent $1.4 billion security breach on the Bybit exchange, Ethena has assured stakeholders that USDe remains fully collateralized, with minimal exposure of less than $30 million to the affected exchange

ENA Price Analysis

The 4-hour chart of ENA reveals a well-defined Elliott Wave structure, highlighting the completion of a five-wave impulsive cycle, followed by an A-B-C corrective wave sequence. The price peaked near $1.32 before entering a prolonged decline within a descending wedge pattern, with wave C bottoming below the 0.786 Fibonacci retracement level at $0.37. This retracement aligns with historical support, increasing the likelihood of a bullish reaction.

The RSI indicator confirms the oversold conditions, with a recent bounce suggesting that buyers are stepping in at key support levels. Additionally, price action has shown an initial breakout from the descending wedge structure, a common reversal pattern following extended corrections. The first significant resistance lies at $0.63 (0.618 Fibonacci retracement), with further hurdles at $0.76 (0.5 Fibonacci retracement) and $0.89 (0.382 Fibonacci retracement). A decisive move above these levels would validate the beginning of a new impulsive phase.

While the bullish outlook is gaining traction, failure to maintain above $0.40 could invalidate the reversal setup and lead to a deeper correction towards the $0.26 region (1.0 Fibonacci retracement), where stronger demand could emerge.

ENA Price Prediction

The 1-hour chart provides a more granular view of the potential impulsive structure forming after the corrective low. Initial wave counts suggest that ENA is on its way to completing its first minor wave (i) of a new five-wave uptrend, with wave (ii) to follow as the first higher low unfolding as a retracement. If this structure holds, the next wave (iii) could drive prices toward the $0.63 resistance level, aligning with the 0.618 Fibonacci retracement from the prior decline.

The bullish scenario remains valid as long as price action sustains above the local support at $0.37. If the ongoing wave (ii) finds support near this level, a strong impulsive move could follow, targeting the 0.618 and 0.5 Fibonacci levels. The final wave (v) of this structure could extend further, potentially reaching above $0.75 if momentum remains strong.

However, a breakdown below $0.37 would signal that the recovery attempt is weak, leading to a reassessment of the wave structure. In such a scenario, further downside towards $0.26 (1.0 Fibonacci retracement) would become a possibility before a true reversal takes hold. Traders should monitor volume confirmation alongside RSI trends to gauge the strength of the developing uptrend.

Key Levels to Watch

• Immediate Resistance: $0.44 (0.786 Fibonacci retracement)
• Key Resistance: $0.63 (0.618 Fibonacci retracement)
• Major Resistance: $0.76 (0.5 Fibonacci retracement)
• Immediate Support: $0.37 (local horizontal support)
• Critical Support: $0.26 (1.0 Fibonacci retracement)