Yes the E took a hit. Probably when the rest of the Cent took the other hits and gouges as you can easily see.
looks like the cent was scraped against the ground or something. Notice how it gouges in the metal in various places and pushed it outwards from the left side of the rim. How? let's take a guess and say it was run over by a car's driving wheel while accelerating and spit it out the back. or some other method.
Damaged, badly I might add. The metal is soft so it easily gets damaged. Numbers and letters reshape themselves and of course we see things that aren't really there.
One thing you have to understand, is that you just can't focus on one little part of the coin. because you forgot the "7" in the date too. But you have to review the entirety of the coin (front and back) as it can always help answer questions of damage, or die clashes (real errors), etc. Remember 99.99% of the stuff you will find will be damage. So *always* think that first. Look at the clues that are right in front of you. Human Nature is to ignore the obvious and have wishful thinking. With coins you have to discharge those "wishful thoughts" and look with an unbiased eye. Look at the entirety of the coin as it's the clue to the one particular spot you are asking about.