- BaFin has mandated a 42-day USDe redemption, effectively shutting down Ethena GmbH.
- ENA’s price struggles to maintain support near $0.26 amid consolidation.
- A breakout above $0.2700 could trigger short-term bullish targets, while a drop below might invite further declines.
The price of Ethena (ENA) is facing pressure as traders assess a significant regulatory decision from BaFin, the German financial authority, which has ordered the closure of Ethena GmbH and announced a 42-day redemption window for USDe stablecoin holders in the European Union.
This announcement has added a layer of uncertainty regarding Ethena’s operations in the region, while also raising critical questions about the future of its stablecoin and its broader compliance strategy.
In light of the adverse regulatory winds, ENA continues to maintain a key support level, fostering cautious optimism among some market participants who are monitoring the next move.
BaFin Concludes Ethena GmbH Investigation with Redemption Agreement
On June 25, BaFin and Ethena GmbH reached a formal agreement to resolve their months-long regulatory standoff through a supervised redemption process for USDe holders within the EU and EEA.
This decision follows a crackdown that began in March when BaFin prohibited Ethena GmbH from distributing its USDe stablecoin and froze its reserve assets due to violations of the EU’s Markets in Crypto-Assets (MiCA) regulations.
Then, on April 15, Ethena announced its decision to cease operations in Germany.
BaFin argued that sUSDe, a yield-bearing version of the USDe, was classified as an unregistered security under EU law, triggering enforcement measures that ultimately forced Ethena Labs to withdraw from Germany.
Under the agreed terms, USDe holders in the EU have until August 6 to submit redemption requests directly to Ethena GmbH.
After this deadline, any unresolved claims must be filed with Ethena’s offshore entity in the British Virgin Islands, thus concluding the company’s regulated operations within the EU.
Ethena Labs stated that once the redemption process is complete, it would have no outstanding issues related to its German entity, although it did not specify if it plans to return to the EU market in the future.
ENA Token Faces Challenges but Shows Resilience
Amid this regulatory backdrop, ENA’s price is showing signs of consolidation, with buyers defending a critical support area near $0.26.
Although the token has lost over 30% in the past month and more than 55% in the last year, price action indicates a potential turnaround could emerge if bullish momentum surpasses the $0.2700 level.
As of now, ENA is trading at $0.2613 after a modest daily drop of 3.2%.
It remains within a tight range between $0.2602 and $0.2757 over the past 24 hours.
Analysts note that if ENA can reclaim the resistance level of $0.2700 with strong volume, a short-term breakout towards $0.2735 and possibly $0.2768 could follow.
However, if the token closes below $0.26, that scenario would be invalidated, increasing the likelihood of additional selling pressure.
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