Ethena Drops 15% from Weekly High — Are Deeper Losses Coming?

• Price Drop: ENA falls 15% from $0.12 weekly high as sellers regain control.

• Market Trend: Long-term bearish signals dominate despite short-term bullish momentum and volume spikes.

• Next Support: Traders watch $0.085 as the key level for potential further losses or bounce.

Ethena —ENA, grabbed attention earlier this week when it surged to a local high of $0.12 on March 4. The sudden rally, paired with increased Open Interest and strong trading volume, suggested short-term bullish momentum. Yet the excitement proved fleeting. Sellers quickly regained control, pushing the price down by 15 percent from the recent peak. Traders are now questioning whether deeper losses could follow, especially as long-term bearish signals remain intact.

#Ethena’s price slips 15% from its weekly high – Deeper losses ahead? https://t.co/nyrcD2c5ZZ

— AMBCrypto (@CryptoAmb) March 7, 2026

Why are ENA Buyers Struggling?

Ethena buyers have faced challenges for months. After peaking near $0.8 last August, the token has steadily lost value. Any brief rallies over the past eight months lasted only a week or two at most. Mid-January saw the price slip below the $0.21 support level, and the recent decline leaves ENA just above $0.1. In five weeks alone, the token experienced a 50 percent drawdown, highlighting the speed at which losses can occur after key support breaks.

Technical indicators reinforce this bearish environment. The Directional Movement Index has signaled a strong downtrend on the weekly chart since October. The Money Flow Index has consistently fallen, while the Accumulation/Distribution line reached new lows. These readings underscore the dominance of sellers and suggest that bullish attempts face significant headwinds. Even with short-term bounces, the larger trend remains unfavorable for buyers.

The recent surge to $0.12 was driven by a bullish divergence in momentum indicators. That move also coincided with a liquidation cluster, temporarily attracting buyers. However, the 78.6 percent Fibonacci level at $0.123 was never tested before price faced rejection. This adds weight to the idea that sellers still control the market, keeping the overall trend firmly bearish despite momentary rallies.

What ENA Traders Should Watch

For traders, the key focus is the next potential target. Technical evidence points toward $0.085 as the immediate support level. Breaking below this could accelerate losses, giving bears even more control. Conversely, any meaningful recovery would require surpassing the recent $0.12 peak and challenging higher resistance levels.

Short-term traders may find opportunities in bounces or brief recoveries, but risk management is crucial. The combination of strong selling pressure, historical drawdowns, and technical signals indicates that buyers need caution. Monitoring momentum indicators, support levels, and trading volume can provide clearer guidance for the coming sessions.

Overall, while brief rallies provide hope, the prevailing market conditions suggest caution. Ethena has shown that even impressive short-term gains can be quickly reversed by sustained bearish pressure. Traders must respect the larger downtrend, balancing potential entry points with awareness of deeper losses. Observing key technical levels and market sentiment will be essential in navigating ENA’s next moves.