Tron founder Justin Sun has made significant Ethereum sales amid a sharp downturn in the cryptocurrency’s price. Over the past seven days, Sun has sold 50% of his Ethereum holdings, valued at approximately $143 million, following Ethereum’s rejection at the $4,000 level.
Blockchain analytics platform Spot On Chain reported that Sun recently redeemed 39,999 ETH from liquid staking platforms like Lido Finance and EtherFi. These funds were subsequently deposited into HTX, fueling speculation about his strategy.
Justin Sun’s recent market activity has added to Ethereum’s (ETH) woes this week. The coin has shed 17% in the last seven days and is trading at $3,304. Analysts are predicting further declines below the $3,000 mark in the coming days.
According to Spot On Chain, since November 10, Sun has offloaded a total of 108,919 ETH, worth $400 million, at an average price of $3,674 per ETH. Many of his transactions have occurred near local market highs, which shows that the Tron founder is executing a calculated profit-taking approach.
🚨 Over the past 7 days, Justin Sun (@justinsuntron) redeemed 39,999 $ETH ($143M) from Lido Finance and Etherfi and deposited it all to #HTX. 🔄💰 pic.twitter.com/pUSDQgZtRC
— SmartWhalesAI (@SmartwhalesAI) December 23, 2024
Moreover, reports indicate Sun is unstaking an additional 42,904 ETH, valued at $139 million, from Lido Finance. This could lead to further selling pressure in the days ahead.
Between February and August 2024, Sun spent an estimated $1.19 billion to accumulate 392,474 ETH, distributed across three separate wallets. Despite the recent sell-offs, his holdings have yielded a 29% return on investment, translating to a profit of approximately $349 million.
Ethereum’s price action has reflected bearish sentiment across the broader cryptocurrency market. Over the past 24 hours, ETH has declined an additional 2.19%, with trading volume dropping by 8.57%.
Prominent crypto analyst IncomeSharks attributed the sluggish activity to a “low volume weekend” and heightened stock market volatility. Despite this, the On-Balance Volume (OBV) indicator suggests that recent buyers are still in profit and providing some price support.
However, the overall market outlook remains pessimistic, particularly with large holders like Sun continuing to sell. Analysts note that this could exacerbate downward pressure on Ethereum’s price, especially if key support levels are breached.
Ethereum is navigating a critical phase as 2024 draws to a close. The cryptocurrency reached an annual high of $4,101 earlier this year but has since fallen below pivotal thresholds. ETH is currently trading below the $3,500 mark and the 100-hourly simple moving average (SMA), with technical insights pointing to a short-term bearish trend.
Per recent analysis from TradingView, resistance levels at $3,420 and $3,500 are pivotal for a potential recovery, while key support levels include $3,200, $3,120, and the psychologically significant $3,000 mark. A break below $3,000 could accelerate the bearish momentum, while a successful climb above $3,420 might set the stage for further gains toward $3,650.
Amid the bearish signals, some analysts see a glimmer of optimism. ‘I am Crypto Wolf,’ a notable crypto analyst, highlighted the potential formation of an inverse head-and-shoulders (iHS) pattern on Ethereum’s price chart. According to this outlook, the cryptocurrency could experience a bullish continuation if the pattern is completed successfully.
Additionally, Ethereum continues to attract institutional interest, particularly through exchange-traded fund (ETF) products, which could mean the market is optimistic about a price rally in the near future. Recent data shows that in the last trading week, running from December 16 to 20, total net ETH ETF inflows hit $62.73 million, adding to a positive momentum for four consecutive weeks.
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