Key Points
- Despite Arthur Hayes selling in large quantities again, Ethena still rose.
- A wallet allegedly related to Hayes sold 28 million ENA tokens.
- Traders are focusing on the $0.20 support level and the $0.23 resistance level.
The ENA token of Ethena rose by about 4% on October 26, despite new sell-offs related to Arthur Hayes, one of the co-founders of BitMEX. Hayes continued to reduce its exposure to crypto assets ahead of this week's Federal Reserve meeting.
During the rebound on Monday, the trading price of ENA was around $0.20 to $0.21, after having fallen below $0.19 over the weekend. During this rebound, blockchain tracking firm Lookonchain identified that another 14 million ENA tokens were transferred out of wallets associated with Hayes, worth approximately $2.73 million.
Arthur Hayes sold $2.7 million as encryption risks rise ENA
According to the report from Lookonchain on October 25th, addresses related to Hayes have transferred another 14 million ENA, worth approximately 2.73 million US dollars.
This transaction occurred after the previous batch of 14 million ENA. The Lookonchain identified on October 24th was worth approximately 2.76 million US dollars.
In total, these two transfers represent approximately 28 million tokens, valued at nearly 5.5 million US dollars. However, transfers to exchanges and trading companies do not alone prove the final transaction price.
On October 24th, it was confirmed that he had closed his directional trading portfolios in his family office Maelstrom and realized profits on Ethereum, ENA, Uniswap, and other cryptocurrencies.
He mentioned that there is uncertainty in the macroeconomic and geopolitical environment, and stated that he will remain on the sidelines until the prospects improve.
Lookonchain It is estimated that Hayes sold approximately $28.8 million in cryptocurrencies within 24 hours, recording a profit of about $6.65 million, mainly from Ethereum and ENA.
This change contrasts with Hayes's bullish forecast for Ethena in September. At that time, he predicted that ENA might rise to $0.50 by the end of 2026.
He had previously predicted that the price of ENA could reach $1, and held an open position in that token.
Why does the price of Ethena continue to rise despite whales selling?
This rebound indicates that the buying side has at least absorbed some of the selling pressure, however, there was no single, clear catalyst for the price increase on Monday.
During the rebound period, the trading volume of ENA was approximately 420 million US dollars, which means that the latest transfer of 2.73 million US dollars by Hayes is not considered large in comparison to the overall daily trading activity.
Meanwhile, Ethena continues to expand the distribution scope of its synthetic US dollars USDe, including new integration activities related to OKX's X Layer and Aave.
The ecosystem has previously attracted a large amount of investment, including a round of financing of $530 million from StablecoinX. The funds were used to acquire ENA tokens.
Ethena's earlier collaboration with World Liberty Financial also demonstrates its efforts to extend USDe and sUSDe to more decentralized financial applications.
However, the increase in the adoption rate of USDe does not necessarily translate proportionally into buying orders for ENA.
Ethena Price Prediction: ENA Can it return to $0.23?
The short-term trend of ENA depends on whether buyers can hold the support around $0.20.
If the price can remain above $0.21, it may create room to move towards $0.23; if the overall market sentiment improves further, there is a possibility of rising to $0.25 as well.
On the contrary, if the price falls below $0.20 again, ENA could drop to $0.18, especially if the Fed's decision on October 28th triggers more volatility.
The long-term investment logic of Ethena also depends on its USDe business and token economy model. Previously, when seeking decentralized support for its assets denominated in US dollars, the protocol had already expanded its framework for acceptable collateral.
