
The Ethena token has stabilized after experiencing a significant drop in recent days, following Spark’s announcement regarding stablecoin integration.
Ethena (ENA) climbed to $0.83 on January 14, bouncing back from this week’s low of $0.7255. Despite this recovery, the token is still 35% below its peak for the year and has created a concerning chart pattern that indicates a possibility of further decline.
Spark, the 13th largest entity in the decentralized finance sector by assets, revealed plans to integrate Ethena’s USDe (USDE) and sUSDe stablecoins into the Spark Liquidity Layer. As part of this initiative, the Spark Liquidity Layer will assign stablecoins to Ethena, with aims to boost the allocation to $1.1 billion.
“We view USDe as an exceptionally robust foundation for leading DeFi applications and developers today. Ethena’s collaboration with Spark Liquidity Layer marks a significant step towards improving the accessibility of USDe and sUSDe, enabling more users to take advantage of crypto-native assets.”
Ethena has emerged as one of the prominent players within the cryptocurrency industry. Its USDe stablecoin boasts a market capitalization exceeding $5.79 billion, making it the fourth largest in the market. Unlike Tether and USDC, USDe provides holders with a monthly yield, currently set at 11%. The staked version of Ethena, sUSDe, holds over $4.1 billion in assets.
Spark is another key player in the industry, offering users the ability to save and borrow stablecoins. Its USDS stablecoin has a market cap of $6.13 billion, positioning it as the third largest in the space.
Technical Analysis of Ethena Price

The daily chart indicates that ENA has been on a steep downward trajectory over the past few weeks, decreasing from a peak of $1.3085 earlier this year to its current value of $0.8345.
The token has dipped below the 50-day and 25-day exponential moving averages, indicating that bearish sentiment is prevailing.
Importantly, Ethena has formed a double-top pattern at $1.3085, with the neckline positioned at $0.8455. A double-top pattern is typically seen as a sign of bearish reversal.
In light of this pattern, ENA is likely to experience further declines as sellers aim for the next psychological level at $0.50 — around 40% below the current price. However, if the token manages to break above the key resistance level at $1, this bearish outlook could be overturned.