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Ethena (ENA) has recently seen a significant spike in whale activity, raising cautious optimism within the crypto community. A newly created multisignature wallet has accumulated 14.57 million ENA tokens—worth approximately $4.41 million—from major exchanges Binance and Bybit. This inflow occurred shortly after ENA posted an 11.3% price rebound to $0.3379, drawing renewed attention from market watchers.
Unlike typical high-volume transfers used for trading or arbitrage, these tokens were sent to a Gnosis Safe, a well-known protocol for secure, long-term custody. This has led many to believe the wallet owner is betting on Ethena’s long-term value, rather than short-term volatility. The timing is noteworthy, as the broader crypto market is still experiencing uneven sentiment.
Despite the whale accumulation, the majority of ENA holders remain deep in unrealized losses. Data reveals that nearly 94% of ENA addresses are “out of the money,” meaning they purchased tokens above the current market price. Only 0.39% of holders are in profit, while around 5.7% sit at break-even. Most buying occurred in the $0.35 to $0.50 range, creating a psychological and technical resistance zone that may act as a barrier to further price appreciation.
This presents a challenging scenario. When an asset begins to recover after a major drawdown, holders sitting on losses often sell into strength. These “trapped” investors, eager to minimize losses, can stall momentum by flooding the market with sell orders during price rebounds. For ENA to mount a serious recovery, it will need sustained buying pressure to overcome this potential wave of exit liquidity.
Adding to the complexity, recent data suggests that large-holder behavior is anything but stable. While whale netflows soared by over 10,600% in May, the past seven days have seen a sharp 1,982% decline. This indicates that while there was aggressive accumulation last month, the recent activity could reflect either distribution or dormancy. The 90-day trend still shows strong net inflows, but the short-term reversal has cast doubt on the consistency of whale interest.
Simultaneously, ENA’s derivatives market is heating up. Trading volume has more than doubled, surging 110% to $900 million, while Open Interest rose by 10.6% to $430 million. This spike shows increased engagement from leveraged traders, but the underlying dynamics may not support a true rally. Liquidation data reveals that short positions totaling $245,000 were wiped out, compared to $136,000 in long liquidations. While this imbalance suggests short squeezes played a role in the price rebound, it does not yet indicate confident bullish positioning.
Most of these liquidations occurred on Binance and Bybit—the same platforms from which the whale accumulated ENA. However, the spread between short and long liquidations isn’t wide enough to confirm a strong bullish trend. Instead, it may point to speculative trades that capitalized on sudden volatility, rather than indicating a market-wide sentiment shift.
On the technical front, ENA remains within a long-standing consolidation range. It recently bounced from a key support level around $0.25, a zone that has repeatedly held during periods of decline. The stochastic RSI now hovers near the oversold region, suggesting a possible continuation of the recent rebound—if buying momentum picks up.
However, strong resistance still exists below the $0.50 mark. For ENA to break out of its broader downtrend, it must hold the $0.25 support while also reclaiming crucial mid-range levels like $0.35 and $0.40. These areas are likely stacked with sell orders from previously underwater holders.
In summary, Ethena’s recent whale activity and the surge in trading volume hint at growing market interest. But a sustained recovery will require more than just speculative energy. The path forward depends on whether accumulation resumes, spot market volume rises, and broader investor sentiment turns more optimistic. Until then, ENA’s rebound remains on fragile ground, and its next move will be watched closely by traders and long-term holders alike.
