Ethena Bull Trap: Experts Warn of Coming Price Crash

Ethena's price has seen a remarkable rally of over 33% in just eight days, but experts warn that this could be a bull trap. The altcoin's upward movement comes amidst a broader market sentiment shift following the Federal Reserve's decision to keep interest rates unchanged at 3.50%-3.75%. Despite Ethena's gains, its long-term price trend remains bearish, with a swing structure indicating a continuation of the downtrend.

The recent bounce in Ethena's price was accompanied by a significant increase in daily trading volume and Open Interest, but this could also be a sign of a relief rally rather than a genuine recovery. The fact that Bitcoin's bounce was relatively smaller at 5.27% since last Wednesday's low suggests that the altcoin market may still be experiencing some instability.

According to technical analysis, the psychological round-number resistance at $0.10 is keeping the bulls at bay, while Fibonacci retracement levels indicate strong bearish barriers around $0.094 and $0.099. If Bitcoin continues its sell-off, it could negatively affect altcoin sentiment, leading to a slide lower for Ethena in the coming days and weeks.