Ethena slides as $12M token unlock casts shadow over price

Ethena’s native token, ENA, is under pressure ahead of a scheduled token unlock that could stir short-term volatility in the market.

According to data from Tokenomist, 40.63 million Ethena (ENA) tokens, or about $12.73 million, will be unlocked on June 2. The unlock has affected market sentiment even though this only accounts for 0.7% of the supply in circulation. In the past, even minor unlocks have had an impact on prices as investors prepare for possible selling pressure from newly issued tokens.

Just 38% of ENA’s entire supply has been unlocked so far. Ethena’s circulating supply currently stands at 5.82 billion tokens out of a maximum of 15 billion, with a market cap of approximately $1.78 billion and a fully diluted valuation of over $4.56 billion.

As of this writing, ENA is down about 2% over the last day, trading at $0.304. Since late April, the token has been stuck in a downward trend, with the most recent decline reflecting caution before the unlock. ENA is now hovering below key support levels, with technical indicators flashing mixed signals.

At 40.4, the relative strength index indicates neutral momentum but is close to entering the oversold territory. A bearish crossover in the moving average convergence divergence indicates waning momentum. Further supporting the downward trend, ENA is trading below several major moving averages, such as the 10, 20, 50, and 100-day EMAs and SMAs.

After a brief squeeze, the Bollinger Bands are beginning to widen once more, suggesting that volatility may be increasing. Price action is now testing the lower band, which could either act as support or open the door to a sharper decline if broken.

If ENA fails to hold the $0.30 level, a further slide toward the $0.27–$0.25 range is possible, especially if token unlock participants sell into weakness. On the flip side, a short-term recovery might be triggered if ENA can break above the 20-day EMA and reclaim the $0.32–$0.34 range. To support this, there would likely need to be strong ecosystem news or a recovery in overall market sentiment.

Despite the short-term uncertainty, Ethena continues to build. More than 900 million users now have access to Ethena’s decentralized finance thanks to the integration of its yield-bearing USDe stablecoin into the TON blockchain in May. The ongoing testnet for EtherealDEX, a decentralized exchange powered by sUSDe, also shows promise, with a full launch expected later this year.