Ethena Price Surges 65%, Achieving 4-Month Peak: $1 in Sight?

• Ethena’s ENA price rises and hits a 4-month high amid governance buzz and recent election-based optimism.
• ENA volume spiked massively, amounting to $1.15 Billion, after Wintermute’s fee proposal.
• Technical chart insights showcase bullish trajectory signs ahead towards the $1.00 target.

The price of Ethena (ENA), the native token of Euler Labs, has skyrocketed by 65% over the past week. This surge has caught the eye of investors and traders.

In the last 24 hours alone, the Ethena price has climbed over 5%. The token has reached its highest level in four months as the market eagerly awaits a revenue-sharing proposal.

The ENA price is currently experiencing difficulties near the 200-day EMA band. However, this week’s impressive rally has many speculations about whether the ENA price could reach $1.

The ENA token is integral to Ethena’s synthetic dollar protocol on the Ethereum blockchain. This has seen its price surge due to several factors. These factors include Trump’s election victory, Bitcoin‘s rise, and anticipation of a governance decision impacting ENA crypto holders.

With recent bullish signals, increased market activity, and exciting developments from Euler Labs, ENA crypto is entering a promising phase. Let’s explore the factors driving this surge and the potential for further Ethena price increases.

Wintermute Pushes for Fee Switch to Reward Ethena Holders

The recent surge in the Ethena price follows a proposal from Wintermute. He is a prominent crypto market maker who introduced a new fee-sharing model for its governance token, ENA.

According to this proposal, a portion of the revenue generated would be distributed to ENA holders. This would allow them to benefit from the protocol’s growth.

This revenue-sharing mechanism is designed as a long-term incentive for supporters of the protocol. It promotes sustainable development and community engagement. If approved, it would create a direct revenue stream from Ethena’s operations to its investors.

Wintermute’s proposal highlighted that ENA holders lack financial incentives tied to Ethena’s performance. That led to a misalignment of interests between the protocol’s participants and its success.

Wintermute just proposed to turn fee-switch on for Ethena's sENA to align ENA holders with the protocol's growth.

They claim that Ethena generates significant revenue, showing PMF for USDe but sENA holders don't benefit from it.$ENA is up by 36% today. pic.twitter.com/7LPg4ij1RR

— Ignas | DeFi (@DefiIgnas) November 6, 2024

To address this, Wintermute suggested implementing certain conditions. These conditions include reaching a specific threshold for the circulating supply of USDe before the revenue-sharing model can be activated. It also involves generating consistent revenues.

The risk committee is expected to evaluate these factors to ensure the proper implementation of the fee-sharing mechanism.

Ethena Price Rally Pushed by Mighty Market Demand

The recent bullish market and the announcement of the new proposal have significantly increased interest in ENA. This led to heightened trading activity and price volatility.

Over the past 24-48 hours, ENA’s trading volume has surged dramatically. On October 8th, it reached 1.15 billion, the highest in months. It surpassed the previous peak of 1.06 billion on October 16th.

This surge in volume indicated strong market demand. It suggested that the rally was driven by more than just speculative trading. Open interest (OI) for ENA has also followed this upward trend, with a substantial increase this week. Data from Coinglass revealed this.

On November 8th, OI peaked at $283.88 Million. It was the highest in months, compared to the previous peak of $236.61 Million on October 15th.

An increase in OI during a price rally often signals that new money is entering the market. This happens as more investors open positions in anticipation of further gains. Currently, the Ethena price showed signs of exhaustion near the 200-day EMA band due to profit-taking by cautious traders.

As a result, the 24-hour trading volume has decreased by 18%, now at $755.13 Million. Similarly, OI has declined to $274.71 Million. Despite this, the overall trend showed a significant reduction in bearish sentiment.

OI-weighted funding rates for Ethena have improved this month. It recovered from -0.1194% to -0.0265%, indicating a more optimistic outlook.

CIO At Maelstrom Expressed Confidence In Ethena

In a YouTube video, Arthur Hayes, Chief Investment Officer at Maelstrom, shared his top altcoin picks for 2025. He highlighted Ethena as one of his choices. Per Arkham’s data, he is an early investor in the project.

Discussing the future of decentralized finance, Hayes explored the potential of the synthetic stablecoin Ethena.

Hayes expressed strong confidence in Ethena, stating,

“I own Ethena. The price has taken a hit, rising to around $1.50 before dropping to about $0.35 or $0.40.”

He believes Ethena will become more appealing. That’s because hedged positions on crypto asset deposits back the Ethena synthetic dollar (USDe). It’s the opposite of the stablecoins, which are backed by dollars in a bank or U.S. treasuries,

Ethena Price Technical Analysis

At press time, the ENA price was trading at $0.5064, with some analysts predicting it could rise to $1.00. The recent upward trend has enabled ENA to break through significant barriers.

Crossing the upper boundary of the Bollinger Bands is a strong buy signal. If ENA maintains this momentum and trading volume stays high, it could reach higher resistance levels around $0.6562 soon. This breakthrough could trigger a Change of Character (ChoCh) level at $0.6562.

Ethena’s market position appears robust at $1.44 billion. It has a fully diluted market cap of nearly $7.60 Billion and annual revenue of about $150 Million.

If Wintermute’s proposal is approved, the revenue-sharing model could attract more investors. This could drive up the telly. The breakout from a long-term falling wedge also supports the bullish outlook.

The breakout from a long-term falling wedge also supports the bullish outlook. Since emerging from this pattern in mid-September, the Ethena price has been rising along an upward trendline. That was characterized by higher lows and higher highs, both bullish indicators.

If current market conditions continue, the ENA price could challenge the psychological $1.00 resistance level in the coming weeks.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.