- Bafin has ordered 42 days of USDE redemption and has ended its Ethena GmbH operation.
- ENA Price is struggling to keep support nearly $0.26 amid the integration.
- Breaks above $0.2700 can cause short-term upward targets, but the lower breaks could be even lower.
ENA prices are under pressure as they digested major regulatory moves by German financial regulator Baffin, ordering the closure of Eseina GMBH and introducing a 42-day redemption window for USDE Stablecoin holders in the European Union.
The announcement added a new layer of uncertainty regarding Ethena’s operations in the region, and also raised important questions about the future of its stubcoin and its broader compliance strategy.
In line with regulatory headwinds, the ENA has held key support levels, sparking cautious optimism among some market participants watching the next move.
Bafin terminates Ethena Gmbh probe with a redemption agreement
On June 25, Bafin and Ethena GmbH reached a formal agreement to close a multi-month regulatory conflict through a supervised redemption process for USDE holders within the EU and EEA.
The decision follows a crackdown that began in March when Bafin blocked Ethena Gmbh from distribution of USDE Stablecoin and frozen reserve assets due to a market violation of the Crypto Deduction Regulation (MICA).
Then, on April 15th, Esena announced that it was cutting back on its operations in Germany.
Bafin argued that Susde, a version of the USDE yield, was recognized as unregistered security under EU law, and would ultimately lead to enforcement action that forced Ethena Lab to retreat from Germany.
Under the agreed terms, EU USDE holders must file a direct redemption request with Ethena GmbH until August 6th.
After the deadline, any outstanding claims must be submitted to an offshore entity in Ecena, the Virgin Islands, UK, effectively ending our regulated operations within the EU framework.
Ethena Labs said that once the redemption process is over, there are no significant issues related to German entities, but did not clarify whether they plan to return to the EU market in the future.
Ena Token struggles but shows resilience
Amidst the background to this regulation, ENA prices show signs of consolidation, with buyers defending a key support zone of nearly $0.26.
The tokens lost more than 30% in the past month and more than 55% last year, but price measures indicate that a potential reversal could be formed.
Currently, the ENA is trading at $0.2613 after a modest 3.2% decline in the daytime.
It remains within the $0.2602 to $0.2757 range over the last 24 hours.
Analysts note that if ENA can regain resistance levels of $0.2700 with a strong volume, it could be a short-term breakout to $0.2735, and perhaps $0.2768.
However, if the token falls below $0.26, the setup will be disabled, increasing downside risk and could lead to further sales pressure.
