Ethena (ENA) Set to Unlock Major Tokens Today – Testing Key Support

Date: Wed, March 05, 2025 | 10:45 AM GMT

The cryptocurrency market is showing signs of recovery today after suffering one of its sharpest sell-offs earlier this week. The key catalyst behind this turnaround is a statement from the U.S. Secretary of Commerce, hinting that former President Donald Trump may roll back tariffs on Canada and Mexico later today.

Following this development, Ethena (ENA) has also returned to the green zone, registering noticeable gains ahead of its major token unlock event.

Source: Coinmarketcap

However, despite this short-term relief, the token has already suffered a massive 69% correction in the last 60 days, severely denting investor confidence.

Set to Unlock 39% of Circulating Supply

One of the primary reasons for ENA’s recent downturn has been the anticipation of today’s major token unlock event. According to data from Tokenomics , Ethena is making its first insider unlock, which will release a staggering 2.07 billion ENA tokens—equivalent to 39% of its circulating supply—worth over $764 million.

Source: Tokenomics

Here’s how the unlock distribution is structured:

• Core Contributors: 1.13 billion ENA (~$471 million)
• Investors: 937.5 million ENA (~$392 million)
• Ecosystem Development: 7.93 million ENA (~$3.32 million)

This influx of unlocked tokens raises concerns about potential sell pressure, which could further impact price stability if large holders choose to offload their holdings.

Testing Key Support

From a technical perspective, Ethena (ENA) has been in a steady downtrend since the start of 2025 after facing rejection at its December high of $1.31. The bearish momentum has now pushed ENA to its current price of $0.36, where it is testing a crucial support zone between $0.31 and $0.40 (highlighted in red on the chart).

Ethena (ENA) Weekly Chart/Coinsprobe (Source: Tradingview)

If ENA manages to hold this support, a potential bounce could lead to a recovery rally, especially if it reclaims its 25 simple moving average (SMA). A confirmed breakout above this level could fuel a trend reversal, pushing the price toward $0.80 and beyond.

On the flip side, if ENA fails to sustain this key support, the next major downside target would be around $0.23, which marks the bottom range of its previous trading structure (highlighted in grey).

What’s Next?

With 39% of ENA’s supply unlocking today, investors should be prepared for increased volatility. If demand absorbs the selling pressure, ENA could stabilize and begin a recovery process. However, failure to hold the key $0.31–$0.40 support zone could trigger another leg down.

All eyes are now on how ENA reacts to this critical level and whether the broader market recovery can provide additional support.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always conduct your own research before investing in cryptocurrencies.