Ethena (ENA), one of the emerging altcoins in the crypto space, has seen a burst of momentum over the past few days. After trading relatively flat in recent weeks, the token surged by over 6.6% in just 24 hours, and market analysts believe this may only be the beginning.

Currently priced around $0.3342, ENA has climbed from a local low of $0.25 earlier this week. On a weekly basis, the token has posted an 8% gain. While the monthly chart still shows a slight decline of around 3.5%, the recent uptrend suggests that bullish sentiment is building — and may soon push the token even higher.

What’s catching the attention of analysts and traders is a specific chart formation that often precedes significant price moves: the inverse head and shoulders pattern. According to popular market analyst Ali Martinez, this classic reversal pattern could signal a breakout for ENA, potentially taking the price up to $0.39 if confirmed.

This isn’t the first time Ethena has responded positively to this setup. Back in December 2024, the token rallied from $0.90 to $1.32 after a similar pattern breakout, marking a strong precedent for what might lie ahead.

Supporting this bullish outlook is a wave of on-chain and trading data that indicates growing investor confidence.

One key metric is Spot Netflow, which has recently turned negative. Netflow measures the balance of coins entering and leaving exchanges. A negative reading, like the -693.2k figure seen now, suggests that more ENA tokens are being withdrawn from exchanges — typically a bullish signal, as it indicates that holders are moving coins into cold storage or wallets rather than selling.

Further data from the derivatives market backs this up. Ethena’s futures buy volume surged to 173.7 million ENA tokens over the last 24 hours, showing a notable increase in demand. When this volume rises sharply, it’s often a sign that large traders are betting on higher prices.

At the same time, open interest — a measure of the total number of active futures contracts — has grown from $262 million to $278.2 million. This rise means that more investors are opening positions, with many betting that ENA will continue its upward move.

Adding to the bullish case is the positive funding rate currently seen on most exchanges. A positive funding rate means that traders holding long positions are paying a premium to stay in their trades, a sign that the majority expect prices to keep climbing.

With multiple indicators aligning, the market mood around Ethena has clearly shifted. Buyers are stepping in with confidence, and technical patterns are pointing toward a potential breakout zone between $0.37 and $0.39.

Still, caution is advised. Crypto markets remain volatile, and any unexpected shift in sentiment — whether from macroeconomic news or broader market corrections — could pause or reverse the current trend. If bullish momentum weakens, ENA may retrace back toward the $0.30 support zone.

For now, though, the trend appears favorable. As long as buying pressure holds and market conditions remain stable, Ethena could be setting up for its next major move. Traders and investors will be closely watching the $0.37 resistance level as a key test in the days ahead.