The crypto market is showing minor signs of a rebound as Ethereum (ETH) bounces back with a 4% weekly gain, giving altcoins some breathing room after months of selling pressure.
Is a Rounding Bottom Forming?
ENA’s price has been in a steep decline since early January after facing rejection from its all-time high of $1.32. The aggressive sell-off sent the token crashing over 70%, eventually finding a base around the $0.33 level. After weeks of consolidation, the current price action suggests that ENA may be forming a 'Rounding Bottom pattern', a classic reversal formation that often marks the transition from a bearish phase to a new bullish trend.
Could This Be the Start of a Recovery?
For this pattern to fully play out, ENA must break through its overhead resistance zone, particularly around the 50-day moving average. A decisive move above this level would validate the rounding bottom and open the door for a much larger recovery. Historically, when assets complete this pattern, the upside target often extends toward previous highs, meaning ENA could aim for the $1.30 region in the coming months. Adding to the bullish case, the MACD indicator is showing early signs of a bullish crossover, suggesting that selling pressure is weakening. If buying volume increases in the coming days, it could further confirm the shift in momentum and reinforce the idea that ENA is entering a recovery phase.
Conclusion
ENA appears to be at a turning point, with the rounding bottom pattern signaling a potential trend reversal. A breakout above key resistance, particularly the 50-day MA, could ignite a strong rally toward previous highs. However, failure to hold support this zone may lead to further downside. Traders should watch price action closely as momentum builds.
This requires careful observation of support and resistance to determine the next movements for ENA.
