The crypto market recorded a significant downtick during Tuesday’s U.S. market hours as Bitcoin dropped 5%. The BTC price struggling to hold the $100k mark has stalled bullish momentum in the altcoin market, creating a breakdown scenario in assets like ENA. With onchain data showing whale selling pressure, the Ethena price could lose $1 floor.
By press time, the ENA price trades at $1.08 with an intraday loss of 7.7%. According to Coingecko, the asset’s market cap is at $3.2 Billion, while the 24-hour trading volume is at $567.2 Million.
Key Highlights:
- The formation of a double-top pattern leads to the current correction trend in Ethena price.
- ENA price downfall witnessed accelerated selling pressure with recent whale/institution selling.
- The $0.88 level, backed by a 100-day Exponential moving average, creates strong support for crypto buyers.
Ethena Price Correction Accelerates with Major Deposit to CEXs
The Ethena ecosystem observed substantial whale and institutional activity over the past 14 hours, with two large deposits totaling 16.38 million ENA (worth $19.4 million) made to centralized exchanges (CEXs).
According to data from Spot On Chain, a multisign wallet labeled “0xc69,” deposited 10 million ENA ($11.9 million) to Bybit approximately 13 hours before reporting. Despite this significant transfer, the wallet still holds a considerable 124.7 million $ENA (valued at ~$144 million), most of which is currently staked.
Historically, this wallet has offloaded ENA before major price drops, raising concerns among investors for another drop. Interestingly, it shares a Bybit deposit address with Arthur Hayes, the founder of BitMEX, adding further intrigue to its transactions.
Another notable entity, Galaxy Digital, deposited 6.38 million ENA ($7.49 million) to Binance at an average price of $1.173 just six hours ago. With this transaction, the institution secured an estimated profit of $2.64 million (+26%) while retaining 4.45 million $ENA ($5.17 million) in its holdings.
Typically, the whale/ institution selling bolsters bearish sentiment in the market and drives a notable price correction. However, these entities still hold a substantial amount of ENA, indicating the big may plan to reduce their exposure for a temporary retracement.
Two more whales/Institutions deposited 16.38M $ENA ($19.4M) back to CEX in the past 14 hours.
1/ Multisign “0xc69” deposited 10M $ENA ($11.9M) to #Bybit 13 hours ago, leaving 124.7M $ENA (~$144M) behind, mostly under staking.
Notably, this multisign had often offloaded $ENA… https://t.co/w69oFtzPou pic.twitter.com/qxIYiQZQwS
— Spot On Chain (@spotonchain) January 7, 2025
Double Top Pattern Hints Major Breakdown
Amid the Bitcoin price struggling to sustain above $100k, the Ethena price witnessed a surge in selling pressure at $1.31. In the last two days, the coin price has plunged from $1.3 to $1.05, registering a loss of 18%.
The daily chart shows two such reversals since mid-December, indicating the formation of a double-top pattern. The chart setup is commonly spotted at major market tops, projecting intense overhead supply.
With sustained selling, the Ethena price could drop 16% to challenge the neckline support of $0.88. A breakdown below this line will accelerate the selling pressure for a prolonged downfall to $0.447.
On the contrary, if the broader market renews bullish momentum, the ENA price could avoid a $0.88 breakdown, invalidating the bearish thesis. The aforementioned level stands as crucial support for buyers to retake control.
