- Ethena (ENA) has dropped over 60% since January amid broader crypto market weakness, with Ethereum posting its worst quarterly performance since 2018.
- ENA is forming a classic inverse head and shoulders pattern on the 4-hour chart, which is often considered a strong indicator of trend reversal.
- A confirmed breakout above the neckline near $0.34 with decent volume could target $0.4450 resistance level, representing a potential 33% gain.
- The MACD indicator is showing early signs of bullish momentum with the MACD line crossing above the signal line, supporting the reversal narrative.
Date: Sun, April 13, 2025 | 04:30 AM GMT
After enduring a tough start to the year, the crypto market may finally be seeing a light at the end of the tunnel. Ethereum (ETH) posted its worst quarterly performance since 2018, plunging 45%, and that bearish sentiment trickled down to altcoins like Ethena (ENA), which has dropped over 60% since January.
Meanwhile, with following Donald Trump’s recent announcement of a 90-day tariff pause, market sentiment got a boost—and ENA was no exception. The token is up 6% today and showing signs of a potential bullish reversal on the 4-hour chart.
Inverse Head and Shoulders Pattern in Play?
Looking at the technical setup, ENA is seemingly forming a classic inverse head and shoulders pattern, often seen as a strong indicator of an upcoming trend reversal.
The left shoulder formed after ENA was rejected at around $0.40 on March 26. The head took shape following a deep 37% dip, bottoming out near $0.25, which has acted as a solid support level. Currently, ENA is building the right shoulder, which may see a minor dip toward $0.29 and the 50-day moving average (now at $0.3043) before potentially bouncing back.
This pattern, if completed and confirmed with a breakout above the neckline near $0.34, could signal the start of a strong bullish move.
Is a Bullish Reversal on the Horizon?
So far, ENA has been respecting the pattern closely. If bulls manage to push the price above the neckline with decent volume, a measured move could take ENA all the way up to the $0.4450 resistance level—a potential 33% gain from its neckline of $0.34.
The MACD indicator is also showing early signs of bullish momentum, with the MACD line crossing above the signal line, adding further confidence to the reversal narrative.
While technical patterns like the inverse head and shoulders don’t guarantee results, they do offer valuable insights into possible price movements. With improving market sentiment and a clear bullish setup forming, Ethena (ENA) could be gearing up for a significant bounce—if the breakout confirms.
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