Ethena (ENA) Plunges 10% Amid Macro Shock and Prior Overextension

Ethena (ENA) experienced a significant decline of around 10% in just one day, driven by a combination of macro-driven market shifts and prior overextension. The crypto market turned risk-off on September 28 due to renewed Iran tensions, higher oil prices, and rising yields.

This led to more than $300 million in long liquidations and a 1-3% market drop, with altcoins hit hardest. Derivatives metrics showed forced deleveraging, with around $309 million in long positions liquidated on major exchanges.

Ethena had just experienced an extreme rally, rising from about $0.014 to around $0.28 in under two weeks. However, this left ENA vulnerable to profit-taking and leverage unwinds.