Ethena Surges 30% in 24 Hours, Can $ENA Price Reach $2 Mark?

Among the many altcoins, Ethena has grabbed the upward momentum and risen 30% in value over a day. Priced at $0.5157 at the time of writing, we will test if $ENA can hold itself strong and for how long.

As the US election season comes to an end, the crypto market has been flourishing. Bitcoin hit a new all-time high, commencing forward a much-anticipated altcoin season. As always, altseason provides newcomers to enter the market at a much lower entry point. 

Winermute Urges Fee Switch Proposal

The recent 30% price uptick in Ethena can be attributed largely to the growing optimism over a new governance proposal from crypto market maker Wintermute. This proposal seeks to implement a ‘fee switch’ that would allow Ethena holders to directly benefit from the increasing revenue generated by the Ethena protocol which is currently not the case.  

While Ethena’s stablecoin USDe has a market cap of $2.8 billion and fits well in the market, sENA holders haven’t seen similar rewards leading to a gap between the stakeholder’s expectations and the growth of the protocol. 

Wintermute has urged Ethena’s Risk Committee to establish clear metrics, including USDe’s circulating supply and average revenue level, before implementing the fee switch.  With Ethena’s fully diluted market cap approaching $5 billion and $150 million in annual revenue, this proposal has the potential to boost sENA’ yields, piquing investors’ interest further in $ENA therefore pushing prices further up. 

How Far Can Ethena’s $ENA Go?

Source: Coinalyze

Ethena has experienced a significant increase in price with trading volume surging by 60% and its market capitalization climbing up 23.6% in just a day. This strong upward trend, especially with ENA breaking above the upper Bollinger band, indicates a notable potential for further growth. 

If the market support continues to strengthen and trading volumes remain high the token could realistically aim for targets around $0.60 or even $0.65 soon, assuming the positive sentiment keeps up. This prediction is supported by the recent governance proposal from Wintermute, which has generated a lot of newfound interest among investors. 

Given these encouraging developments, the price outlook appears optimistic, and it could potentially reach new highs if market conditions remain favorable. 

Resistance Levels

The price point of $0.55 is close to the recent peak, which means it might provide some immediate resistance as the token rises to rise further. If it manages to break through $0.55, then $0.60 could become an important psychological barrier, specifically with the current upward trend.

However, if the strong rally continues, ENA might target $0.65, where it could encounter even more resistance in its attempt to reach the new price level.

Support Levels

The price point of $0.45 offers immediate support in case of a pullback as it coincides with recent areas of consolidation potentially serving as a stabilizing zone.  At $0.40, there’s a stronger support level that has been effective in the past and helps sustain a positive market sentiment.

If there is a deeper retracement, the token could reach $0.35 as a solid support level where buyers might come back in to move the prices further back up.

Also Read: Meet the Whale Who’s Currently on a Bitcoin Accumulation Spree