Ethena Drops 11% as Arthur Hayes Triggers Profit-Taking Wave

Ethena (ENA) saw a sharp 11.58% daily decline, trading at $0.5413, as high-profile selling and weakening technicals spooked investors.

The drop follows a major token dump by Arthur Hayes and fresh regulatory signals from Asia, shaking confidence even as the project maintains a total value locked (TVL) above $8.7 billion.

Hayes Offloads $4.6M ENA Amid Market Fragility

According to on-chain trackers, BitMEX co-founder Arthur Hayes sold 7.76 million ENA—worth roughly $4.62 million—on August 2. This move came alongside liquidations of ETH and PEPE, totaling over $13 million. Despite previously accumulating ENA, Hayes’ exit coincided with a 92% 30-day price run, amplifying fears that whales could spark broader corrections ahead of his macroeconomic address later this month.

Bearish Break Below Key Technical Levels

The recent price action saw ENA fall below both its 7-day SMA ($0.60) and 30-day EMA ($0.46). Current Relative Strength Index (RSI) sits at 62.9, cooling off from overbought levels above 75. Fibonacci retracement zones around $0.47 are now under threat. Daily trading volume also fell 25.67% to $1.31B, suggesting weakened demand and fading momentum.

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Regulatory Jitters Weigh on Sentiment

Hong Kong’s new stablecoin framework has introduced fresh caution across DeFi and synthetic dollar platforms. Despite ENA’s massive TVL—currently $8.78B, surpassing its market cap by 2.5x—investors remain sensitive to tightening rules that could affect adoption.

With volatility spiking and whale moves under the spotlight, all eyes are on ENA’s short-term support zone around $0.44–$0.47. A decisive break below could trigger further downside as traders reassess altcoin risk in a shifting macro climate.