Ethena (ENA) continues its upward trajectory on Wednesday, gaining 1% intraday and extending weekly gains to 9%. The token is approaching a key technical breakout zone, supported by rising momentum indicators and increased derivatives activity. However, a major token unlock scheduled for Friday introduces potential supply-side risks that could test investor sentiment.
ENA token unlock raises supply concerns
Ethena’s short-term recovery remains intact following Tuesday’s unlock of 40.63 million ENA, representing 0.64% of the circulating supply. The market absorbed the release without significant selling pressure, suggesting improved investor confidence.
Attention now shifts to Friday’s unlock of 171.88 million ENA—worth approximately $119.54 million—which accounts for 2.69% of the circulating supply. Of that, 93.75 million tokens will be allocated to core contributors, with the remainder distributed to investors. The scale of this release could weigh on price action if selling accelerates.
Technical setup favors bullish breakout
ENA is nearing the upper boundary of its consolidation range on the 4-hour chart, with resistance at $0.6911. A decisive break above this level could trigger a rally toward $0.7533, the high recorded on August 23.
Momentum indicators support the bullish outlook. The Relative Strength Index (RSI) has climbed to 62, reflecting growing buying pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) remains in positive territory, with rising histogram bars suggesting sustained upward momentum.
Derivatives data signals growing trader confidence
CoinGlass data shows a 5% increase in ENA open interest, rising from $1.27 billion to $1.34 billion. The $60 million inflow into the derivatives market highlights renewed interest from traders positioning for a potential breakout.
While technicals and sentiment lean bullish, the upcoming token unlock remains a key variable. Traders will be watching closely to see whether Ethena can maintain its upward momentum or face renewed selling pressure.
