Will Macro Risks Disrupt the Current Ethena Price Setup?

The Ethena price has returned to a critical zone this mid-december that previously marked the start of a powerful rally in 2024. While the current short-term price action can’t be ignored as it remains strongly subdued by macro sentiment. But, a combination of technical positioning and improving on-chain metrics is drawing renewed attention to Ethena crypto amid an uncertain macro backdrop.

This generally viewed as a positive indicator for the ecosystem’s fundamentals. While it does not ensure an immediate rebound in Ethena price, it can provide underlying support if market sentiment improves. From a fundamentals perspective, Ethena crypto does not currently show signs of any major weakness.

Macro Conditions Could Override the Ethena Price Forecast

Despite these supportive signals, macroeconomic risk remains elevated. As Bank of Japan’s plays a critical role in global liquidity through the yen carry trade. A potential rate hike on December 19 could force leveraged positions to unwind, leading to broad-based selling across risk assets.

Historically, Bank of Japan rate hikes in 2024 and 2025 were followed by rapid Bitcoin drawdowns of 20–30%. In such a scenario, ENA/USD would likely struggle to maintain support, regardless of improving fundamentals. Therefore, the Ethena price forecast remains highly sensitive to upcoming shortterm macro developments.

For now, the Ethena price sits at the intersection of constructive on-chain signals and elevated macro risk. If liquidity conditions stabilize and consolidation holds, upside scenarios remain viable. However, a deterioration in global risk sentiment could quickly invalidate bullish setups.

Trust with CoinPedia:

CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.

Investment Disclaimer:

All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.