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Ethereum Explodes: Fed Rate Cuts Catapult Price Up!
Ethena (ENA) Gains Strength on Fed Rate Cuts, Hits Record TVL and Offers Investors a Promising Outlook.
Ethereum Explodes: Fed Rate Cuts Catapult Price Up!
The cryptocurrency Ethena (ENA) is currently experiencing remarkable upward momentum, which is largely influenced by the recent interest rate cuts by the US Federal Reserve (Fed). These rate cuts have increased liquidity in the market, causing Ethena's Total Value Locked (TVL) to rise to a record high of $12.025 billion. This is a crucial indicator of investor confidence in the project as they increasingly position themselves for long-term profits and expect the price to rise. InvestX reports that In the past, a similar period of interest rate cuts in 2024 resulted in an impressive 419% increase in the price of Ethereum.
Ethena’s technical picture remains bullish as the token has broken out of a bearish descending wedge pattern. Analysts set the price target for ENA at $0.85, which would represent a new historical high. Technical analysis shows that the Money Flow Index is at 71.54 and the Average Directional Index indicates strong market momentum with a value of 38.41.
Ecosystem growth
In addition to the positive market developments, Ethena has several catalysts that could push the price further higher in the future. Crypto.news highlights that The growth of the USDe stablecoin, now the third largest with a market valuation of over $10.2 billion, could have a significant impact on Ethereum.
Another important factor is Ethena's ongoing $260 million buyback program, where around 5 million ENA is being bought back every day. These measures have already resulted in the protocol's revenue activity reaching $21.62 million in August, compared to $10.14 million in July. These developments have a positive impact on price developments and trading activities.
Institutional participants and price development
The increasing participation of whales and institutional investors has also contributed to the price increase. Addresses holding between 100,000 and one million ENA control nearly 50% of the supply. The current price of the ENA token is $0.7911 and has increased by 0.6% in the last 24 hours. In the last seven days, the token has gained 36% and in the last 30 days it has gained 141%.
With strong resistance at $0.84 and support at $0.72 and $0.68, the token is well positioned. A breakout above the $0.84 level could lead to a move towards the $1 level.
Investors should be aware that the information in this article is for informational purposes and should not be considered investment advice. A buying guide for investors includes, among other things, registration with Bitget and specific trading instructions.