Ecosystem growth fuels Ethena rally, analysts eye 65% upside ahead

Ethena (ENA) has recently broken out of a rare bullish pattern on its one-day chart, signaling potential gains of over 65% from its current price levels.

Over the past seven days, Ethena, which is well-known for its USDe stablecoin, has seen a 24.4% price increase. On October 14, its market cap surpassed the $1 billion mark, now sitting at $1.14 billion, a 200% rise from its September low. Its daily trading volume is currently over $318 million.

Analysts are optimistic, pointing to several bullish signals. Ethena has broken out from an inverse head and shoulders pattern, a rare formation that typically signals a major bullish reversal. Additionally, it has risen above the upper side of a broadening wedge pattern, which has connected the highest swings since April 10.

Anonymous trader CryptoBull_360 has set a bullish target for ENA at $0.68, suggesting a 65% upside from its current price, provided Bitcoin maintains positive momentum. Another analyst, MisterSpread, predicts a more short-term target of $0.52 as long as Ethena stays above the support level of $0.42.

This price rally is supported by a surge in futures open interest, which hit a high of $227 million, up from $137 million the previous week, according to CoinGlass. Furthermore, whales have been accumulating ENA tokens, with smart DEX traders—who are known for making profitable decentralized exchange swaps—purchasing over 2.25 million ENA tokens worth $932.5K in the past week, showing confidence in the token’s growth.

One key development fueling this growth is **Ethena’s proposal to integrate its liquidity and hedging system into Hyperliquid, a decentralized exchange for perpetual trading. The proposal, currently under review by Ethena’s Risk Committee, suggests moving part of Ethena’s hedging flow on-chain to Hyperliquid, improving transparency and reducing counterparty risks. Additionally, it proposes adding the USDe stablecoin to Hyperliquid’s Layer 1 platform upon the EVM mainnet launch, further strengthening Ethena’s DeFi presence.

At the time of writing, ENA is trading at $0.403, according to Pinetbox.com.