Ethena [ENA] whales lock in losses, but did they exit too soon?

• Whale took a 13% loss after a 3-month trade as another opens a 10x long on ENA and closes with a loss.
• ENA price was trading above a descending channel, and a break back into the pattern could mean a continued drop.

Ethena [ENA] was down about 7.60% despite trading volume surging 85% in the last 24 hours as of press time.

The altcoin could be set for significant moves in either direction, but the whales’ activities presented a direction dilemma.

Are ENA whales exiting too early?

A whale purchased 15.473 million ENA at an average price of $0.404. After unstaking, they deposited the remaining 12.16 million ENA—worth $4.42 million—into Binance at $0.347.

This marked the end of a three-month ENA trade, resulting in a loss of $817K, approximately 13.1%. In total, the whale has sold 15.66 million ENA, valued at $5.43 million.

Source: TradingView

Another whale deposited $10.1 million USDC into Hyperliquid, taking long positions in ENA, PEPE, and NEAR, incurring a $400,000 cost in the process.

As the price range tightened, buyers stepped in, hinting that the market might be gearing up for a rally.

However, ENA’s capitulation seemed driven by selling pressure, despite the price remaining above a downward channel. This raises questions about timing—did the whales move too soon?

Will history repeat as USDe supply surges?

The price of the altcoin stood at $0.3531, at press time, a bit above its upper border, suggesting it may soon rebound from its long-lasting descending channel.

After a surge earlier in May pushed the price up beyond $0.40, it pulled back a bit.

If ENA maintains a higher value than the channel lines, it could move higher to $0.50, with $0.8019 as the bigger target. If ENA falls below $0.35, it could reverse and move back to lower levels below $0.28.

The MACD analysis showed that the MACD line and the signal line were intersecting at 0.0151, while the histogram remained flat—indicating neutral momentum.

Source: Trading View

When market uncertainty is high, a major price move can occur—either buyers will take control, or sellers break support again.

The upper boundary of the descending channel acted as a critical support level, but until price action confirmed a breakdown, the level remained intact.

A price above $0.35 could signal strength, but dropping below it might trigger a fresh sell-off. At the time, it was unclear whether ENA’s position would gain traction or weaken further.

Meanwhile, Ethena’s stablecoin, USDe, saw a $300 million surge in supply over the past week as funding rates improved.

This mirrors a similar event from October 2024, when USDe skyrocketed from $0.25 to a record high of $1.25.

Source: CoinMarketCap

Now that the situation was similar, many were convinced another bold move for ENA was beginning.

If what history tells us is correct, this would be the beginning of big advances at Ethena Labs, so this could draw investors who hope to gain great profits.