Resistance 0.36 USD of Ethena: Is there a correction?

* Ethena does not have a bullish structure on the 1-day chart.

• Rapid returns emerged simultaneously with Bitcoin's surge past 100K USD, raising doubts about natural demand.

Ethena [ENA] has been trading in a bearish channel since March. The strong increase of Bitcoin [BTC] surpassing 100K USD has helped ENA rise 27% on the day at the time of writing, and the trading session is not yet over.

The trading volume also increased during the day. This large volume and significant profits may target the highest level of the channel. Ethena may see a short-term price correction.

###ENA: Enough momentum for a breakthrough?

Source: ENA/USDT on TradingView

Technical indicators are favoring the bulls on the 1-day timeframe. OBV has slightly decreased over the past two weeks as Ethena has dropped from 0.365 USD to 0.256 USD.

MFI also decreased after last week's losses.

However, the profit in the past 24 hours is accompanied by the growth of OBV and MFI.

If this is maintained for one or two weeks, ENA will have a real opportunity to break out of the upper level of the channel. At the time of writing, the resistance area to watch is 0.355-0.365 USD.

Source: ENA/USDT on TradingView

Zooming in on the 1-hour chart, a bearish divergence between the price and the MFI indicator has appeared. This indicates that short-term bullish momentum has pushed the market beyond its limits and a correction is likely to occur.

This adjustment may cause the price of ENA to drop to levels of 0.318 or 0.313 USD, which are support levels on the lower time frame.

Source: Coinglass

The liquidation heatmap data from last month shows an untested liquidity cluster above.

A fairly dense liquidation cluster is at the level of 0.343 USD, marking it as a price target in the coming days.

The level of 0.36 USD is also an attractive and feasible area. Traders who have entered long positions may consider taking profits around the 0.36 USD zone, as this area aligns with the high of the ENA channel.

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