Athens [ENA] It fell to a low of $0.235 on Monday after Bitcoin [BTC] It temporarily fell below the $84,000 level. Since then, Bitcoin has risen 3% in 12 hours, but ENA is only up 1.28% over the same period.
This could be a warning of a lack of relative strength and the absence of Ethena buyers in the market. Sentiment appeared tepid at best, and losses seemed more likely than any meaningful recovery in the short term.
The two time frames – mapping where Athens stands
Source: ENA/USDT on TradingView
ENA has returned to the $0.238 support level it tested in late June. At the time, a two-week consolidation around this support level was followed by a rally above $0.8 by August.
For the same scenario to be repeated, market sentiment must become bullish. There is a need for a risk-taking attitude towards cryptocurrencies especially altcoins. At the time of writing, this did not seem likely. In fact, the bearish structure of the ENA is likely to continue on the daily time frame.
Source: ENA/USDT on TradingView
The 1-hour chart has shown some interesting behavior over the past two weeks. Consolidation stages are highlighted in purple on the chart above. One was a canal, the other a jagged triangle.
The price action has been tracking Bitcoin and the broader market, wanting to build liquidity around key levels before hunting for both long and short trades. After that, the real propulsive movement can begin.
If this happens again, a consolidation around $0.238 is very likely, followed by the next impulsive move. Depending on the structure, further declines may be expected after that.
Technical health check
On both the daily and hourly time frames, the OBV indicator is trending lower. This indicates ongoing selling pressure. Any bounce in ENA prices is for sale.
The RSI reflects a strong downtrend, which short rallies have been unable to break.
Athens floors and ceilings to view
$0.238 and $0.218 were major support levels at press time. A loss of $0.218 indicates that the next downward move is coming. At this point, the target will be $0.184 – $0.192.
In the next few hours, a rebound to $0.25 may be possible, given the overall imbalance. If this bounce can cross $0.258, the next short-term target will be $0.295. The $0.359 level is another swing level that could represent notable resistance.
Final thoughts
- The ENA was at the support level it last tested in June, but market sentiment was more pessimistic this time, meaning traders should expect the downtrend to continue.
- Traders should be wary of these liquidations, whether on long or short positions.
Disclaimer: The information provided does not constitute financial, investment, trading or any other type of advice and represents the opinion of the writer only.
