- Ethena (ENA) dropped 14% amid bearish pressure from derivatives traders, but strong spot accumulation and rising bullish sentiment suggest investors are buying the dip.
- With $19 million worth of ENA accumulated in four days and a bullish long-to-short ratio on Binance, a rebound toward the $0.35 level remains possible.
Derivative Traders Drive Decline, but Bulls Eye Opportunity
Ethena (ENA) experienced a sharp 14% decline over the past 24 hours, outpacing the broader crypto market’s 2.77% dip. On-chain data and market analysis point to derivatives traders as the primary drivers behind the slump, with a wave of short positions applying downward pressure on the asset.
However, while derivative traders may be betting against ENA’s short-term performance, spot traders appear to be taking a contrarian view—seeing the price dip as a buying opportunity.
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Spot Traders Accumulate ENA Amid Bearish Sentiment
Data from CoinMarketCap’s sentiment tracker reveals a subtle yet notable increase in bullish sentiment within the ENA community. The percentage of bullish voters rose from 80% to 84% in just 24 hours.
Supporting this shift in sentiment, spot accumulation has surged. In the past 24 hours alone, retail investors scooped up approximately $4.63 million worth of ENA. Over the last four days, this total rises to $19.07 million—an indication that many traders are buying the dip in anticipation of a recovery.
Binance, one of the most active ENA trading platforms, reported a long-to-short ratio of 2.96, suggesting strong buying interest. With Binance handling nearly half of ENA’s total $1.18 billion trading volume, such a high ratio underscores growing bullish momentum.
Futures Market Remains Bearish: Declining Open Interest and Funding Rate
Despite the growing spot interest, the Futures market tells a different story. Open Interest has dropped by 13.79% to $381.29 million, indicating that traders are exiting positions, likely due to increased volatility.
The Funding Rate has also dipped into negative territory at -0.0009%, meaning that short traders are paying to maintain their positions—another sign that bearish bets are still in play.
This divergence between Futures and spot markets highlights a potential inflection point. If spot accumulation continues, short positions could face liquidation, potentially triggering a price rebound.
All Eyes on $0.35: Liquidity Cluster Points to Next Target
An analysis of ENA’s liquidation heatmap by AMBCrypto shows scattered liquidity zones, signaling market indecision. However, one key area stands out: the $0.35 region.
This zone holds a notable cluster of liquidity, suggesting it may act as a magnet for price action in the short term. If the accumulation trend continues and short traders begin to unwind positions, ENA could rebound toward this level.
While ENA’s recent drop reflects intense bearish pressure from derivative traders, the rise in spot accumulation and bullish sentiment—particularly on Binance—indicates that investors remain optimistic. As liquidity clusters around $0.35, the coming days could determine whether the bulls reclaim control or the downtrend deepens further.