Against the backdrop of a broader market recovery, Ethena (ENA) has finally broken through the descending channel that had suppressed it for months, ushering in a strong rebound.
The altcoin not only reclaimed the crucial $0.10 level but also briefly touched $0.144, setting a new seven-month price high. At the time of writing, ENA is trading near $0.132 after a 41% surge on the daily chart, with its market capitalization rising accordingly to $1.2 billion.
The performance in volume is equally impressive—trading volume skyrocketed 267% to $363 million during the same period, reflecting a significant influx of new capital into the ENA market.
Short Squeeze Ignites the Rally
The most direct trigger for this rebound was the large-scale liquidation of short positions. According to CoinGlass data, the price surge liquidated approximately $4.2 million worth of short positions.
As the price of ENA continued to climb, traders who had bet on a decline were forced to close their positions, with some shorts even flipping directly to long positions. This concentrated buying behavior further intensified market buying pressure, triggering a chain reaction of short squeezes and forming a positive feedback loop where 'the higher it rises, the more positions are liquidated; the more positions are liquidated, the higher it rises.'
Activity in the derivatives market also surged: trading volume increased by 269%, and open interest (OI) grew by 67% to $390 million. The significant increase in open interest indicates that traders are actively adding to their positions during the rally. Meanwhile, the long/short ratio rose to 1.04, suggesting a market-wide positioning structure slightly tilted towards the long side.
Spot Market and Whales Follow Suit
The short squeeze in the futures market is only half the story—demand in the spot market is also heating up.
CoinGlass data shows that ENA's spot net flow has been negative for two consecutive days, with the latest reading at -$2.3 million (compared to -$4.4 million the previous day). A negative value indicates that more ENA is flowing out of exchanges than flowing in, reducing the circulating supply available for trading in the market. This tightening of supply and demand dynamics typically provides support for the price.
Part of the accumulation power comes from whales. According to monitoring by vxDrophunter, a whale redeemed 5.822 million ENA from the Bybit platform during the price rise. Choosing to withdraw tokens rather than sell them during an uptrend reflects the whale's confidence in ENA's subsequent price movement.
Looking at historical performance, strong spot demand has consistently been a core factor supporting ENA's price. The alignment of price and volume in this current rebound is noticeably superior to previous upward attempts.
Technical Analysis: $0.17 in Sight, But Overbought Signals Warrant Caution
From a technical indicator perspective, ENA's upward momentum remains strong, with buyers clearly in control.
The Bull/Bear Power indicator has hit a yearly high of 100, showing overwhelming bullish dominance; the Relative Strength Index (RSI) has also entered the traditional overbought territory. While both validate the strength of the current trend, they also hint at accumulating short-term correction risks.
On the resistance front, the $0.1600-$0.1657 zone constitutes the first immediate pressure area. If demand can sustain its follow-through, ENA could reclaim the $0.17 level before challenging $0.20.
On the downside, the first short-term support lies near $0.1400, with deeper support located at the two psychological levels of $0.1200 and $0.1000.
Summary
ENA has powerfully broken out of a consolidation range spanning several months with a single-day surge of 41%. A short squeeze ignited the fuse for this rebound, while accumulation by whales at higher prices and net outflows from the spot market have provided sustainability for the move. The synchronized surge in volume across both derivatives and spot markets reflects a structural shift in market sentiment from cautious to optimistic.
However, indicators like the RSI have entered overbought territory, making the risk of chasing the price at these levels a significant consideration. If the price can consolidate above $0.14, then the next targets of $0.17 and even $0.20 are technically feasible. Conversely, if demand fails to persist, a pullback to the $0.12-$0.10 area is not impossible. Position management and risk control remain the bottom line that should never be neglected under any market condition.
