Ethena Price Shapes Inverse Head and Shoulders Pattern Amid USD Integration
Ethena’s price has maintained stability over the past three days, reflecting ongoing efforts by developers to expand USDe integrations.
ENA traded at $0.58 on Thursday, marking a 12.5% increase from its monthly low, yet still remaining 48% below its peak value.
Recent announcements from Ethena’s developers have highlighted multiple integrations, boosting the adoption of its stablecoin. Notably, Ethena partnered with Bitget, a major global crypto exchange, granting access to USDe as margin collateral for coin-margined perpetuals across its user base of 25 million. Additionally, users will benefit from fee-free spot trading on the USDe/USDT pair and can generate returns through the earn section.
Another significant partnership unveiled this week was with Symbiotic, a staking platform. This collaboration enables users to earn staking rewards by staking the ENA token on Mellow. Users will also receive a 30x ENA multiplier, Symbiotic points, and potential future LayerZero allocations.
Furthermore, Ethena integrated with AAVE, a prominent player in Decentralized Finance (DeFi). This integration allows users to deposit USDe stablecoin and leverage other stablecoins on Aave. Additionally, users can deposit assets like stETH, weETH, ETH, and WBTC on Aave to borrow stablecoins denominated in USDe.
Other integrations of USDe include partnerships with Bybit, BounceBit, and Blast, a leading layer-2 network. These integrations, coupled with attractive rewards, have propelled Ethena’s USDe to become the fourth-largest stablecoin in the industry, boasting a market cap of $3.6 billion and over 232,000 holders.
Investors favor USDe for its robust yield of approximately 8.6%, surpassing returns offered by US government bonds. However, concerns linger regarding the sustainability of this yield during periods of high market volatility. Analysts have drawn parallels between USDe’s strong yields and the fate of Terra Luna, which collapsed in 2022, citing risks such as funding rate reversals and counterparty risks.
Despite the growth and integrations of USDe, Ethena’s native token ENA has struggled, experiencing a significant decline from its all-time high. This performance mirrors the broader trend among altcoins, many of which have entered a bear market in recent weeks, largely due to mounting concerns surrounding its stablecoin.
Furthermore, Ethena’s daily trading volume and open interest in the futures market have continued to decline since peaking in April.
Looking ahead, bullish sentiment hinges on the potential reversal indicated by a small inverse head and shoulders (H&S) pattern visible on the hourly chart. In technical analysis, this pattern is often regarded as one of the most reliable indicators of a market reversal.
