Tony Kim
Oct 17, 2025 23:17
EigenLayer (EIGEN) trades at $1.17 following a large 13.77% token unlock that launched 36.82M tokens into circulation, creating promoting strain regardless of optimistic liquid restaking developments.
Fast Take
• EIGEN buying and selling at $1.17 (down 2.0% in 24h)
• Main token unlock occasion launched 13.77% of circulating provide
• Value testing essential help close to Bollinger Band decrease boundary
• Following broader crypto weak point as Bitcoin declines
Market Occasions Driving EigenLayer Value Motion
The dominant issue pressuring EIGEN value over the previous two weeks has been the substantial token unlock on October 1st, which launched 36,820,000 EIGEN tokens representing roughly 13.77% of the circulating provide. This large liquidity injection has created persistent promoting strain as early buyers and insiders probably monetize their positions.
Regardless of this headwind, the ecosystem confirmed optimistic developments with Ekox’s introduction of eXETH, a liquid restaking token designed to reinforce capital effectivity inside the Ethereum staking ecosystem. This innovation permits customers to keep up liquidity whereas incomes staking rewards, probably increasing EigenLayer’s utility and adoption. Nonetheless, the optimistic impression of this technical development has been overshadowed by the token unlock’s market dynamics.
The timing of those occasions has coincided with broader crypto market weak point, as Bitcoin’s decline has weighed on altcoins throughout the board. EIGEN value motion displays this twin strain from each protocol-specific provide dynamics and macro crypto sentiment.
EIGEN Technical Evaluation: Oversold Territory Testing Assist
Value Motion Context
EIGEN value at the moment sits effectively under all main transferring averages, with the token buying and selling at $1.17 in comparison with the 20-day SMA of $1.58. The substantial hole between present value and the EMA 12 ($1.39) and EMA 26 ($1.51) signifies robust bearish momentum that has but to seek out equilibrium. Quantity stays elevated at $19.4 million on Binance spot markets, suggesting continued institutional and retail curiosity regardless of the promoting strain.
The connection to Bitcoin correlation seems intact, with EIGEN following the broader crypto market’s downward trajectory. Nonetheless, the magnitude of EIGEN’s decline suggests protocol-specific components are amplifying the transfer past typical beta correlation.
Key Technical Indicators
The RSI studying of 37.70 locations EIGEN in oversold territory with out reaching excessive ranges, indicating potential for additional draw back earlier than a significant bounce happens. The MACD configuration exhibits bearish momentum with the histogram at -0.0669, although the hole between MACD (-0.1200) and sign line (-0.0530) suggests promoting strain could also be moderating.
Most critically for EigenLayer technical evaluation, the Bollinger Band place exhibits EIGEN at simply 0.1597 of the band vary, putting it very near the decrease band at $0.97. This proximity to the decrease Bollinger Band typically signifies oversold situations, although it may well additionally sign the start of a stronger downtrend.
Important Value Ranges for EigenLayer Merchants
Rapid Ranges (24-48 hours)
• Resistance: $1.26 (7-day SMA and up to date swing excessive)
• Assist: $1.09 (24-hour low and psychological degree)
Breakout/Breakdown Eventualities
A break under the $1.09 help degree would seemingly goal the Bollinger Band decrease boundary close to $0.97, representing the subsequent vital technical help zone. Conversely, any restoration would want to reclaim the $1.26 degree to counsel the promoting strain from the token unlock is starting to stabilize.
The robust help degree recognized at $0.50 represents a serious draw back goal that may coincide with the 52-week low territory, although such a transfer would require broader crypto market capitulation.
EIGEN Correlation Evaluation
EIGEN’s value motion exhibits excessive correlation with Bitcoin’s current weak point, although the magnitude of the decline suggests amplified promoting because of the token unlock occasion. Conventional market components seem secondary to crypto-specific dynamics, with the main target remaining on digital asset sentiment and Bitcoin’s route.
In comparison with different restaking and Ethereum ecosystem tokens, EIGEN has underperformed because of the particular provide overhang created by the unlock occasion. This protocol-specific strain differentiates it from broader sector efficiency.
Buying and selling Outlook: EigenLayer Close to-Time period Prospects
Bullish Case
Restoration hinges on absorption of the unlocked token provide and stabilization of promoting strain. A reclaim of $1.26 resistance with growing quantity would counsel the worst of the unlock impression has handed. Constructive developments within the liquid restaking ecosystem, notably adoption of improvements like Ekox’s eXETH, may present basic help for increased valuations.
Bearish Case
Continued promoting from unlock recipients may strain EIGEN value towards the $0.97 Bollinger Band help and even the $0.50 robust help degree. Broader crypto market weak point would amplify this draw back threat, notably if Bitcoin fails to carry key help ranges.
Danger Administration
Given the elevated volatility (ATR of $0.24), merchants ought to take into account place sizing fastidiously. Cease-losses under $1.09 seem prudent for lengthy positions, whereas any restoration makes an attempt must be monitored for quantity affirmation above $1.26 to validate bullish momentum.
Picture supply: Shutterstock
