Ethereum has been facing a challenging week, and the entire crypto market is feeling the repercussions. To add to the drama, Tron founder Justin Sun has been making headlines with some massive Ethereum transactions. Sun recently sold $143 million worth of ETH, which accounts for about half of his holdings. This move has caused a significant price drop in the Ethereum market.
Many questions have arisen within the community regarding Sun’s decision to offload such a large amount of ETH. People are speculating whether there is a hidden agenda behind these transactions. It’s essential to delve deeper into the factors that are influencing Ethereum’s downward trajectory and what the future holds for this popular cryptocurrency.
Justin Sun’s Massive ETH Transactions
Justin Sun has made some substantial transactions involving Ethereum recently. Since November 10, Sun has deposited a staggering 108,919 ETH, valued at around $400 million, into HTX (formerly Huobi), as reported by blockchain data from Spot On Chain. Most of these deposits took place when Ethereum’s price was near its recent highs, averaging around $3,674 per ETH.
Additionally, Sun has also unstaked 42,904 ETH from Lido Finance, amounting to $139 million. There are speculations that he may transfer these funds to HTX as well. These large transactions have put immense pressure on Ethereum’s price, causing turbulence in the market.
Ethereum’s Price Takes a Hit
Currently, Ethereum is trading at $3,304, marking a 17% decline from its recent rejection at $4,000. Over the past 24 hours, Ethereum has experienced an additional 2.19% drop, with trading volume down by 8.57%. The market sentiment is not optimistic, with 54% of futures trades being short positions and a long-short ratio of 0.8495. However, 78% of Ethereum holders are still in profit at the current price, offering a glimmer of hope amidst the market downturn.
Key Technical Levels to Watch
Ethereum is approaching a critical support level at $3,260. If it breaks below this level, the price could plummet further to $3,000, where the 200-day moving average might provide some support. The Relative Strength Index (RSI) is at 39.28, nearing oversold territory, while the Average Directional Index (ADX) indicates strong bearish momentum. These indicators suggest that Ethereum’s price may continue to face downward pressure in the short term.
What’s Next for Ethereum?
The pivotal question now is whether Ethereum can maintain its position above $3,260. Analysts warn that if it fails to do so, the price could drop as low as $2,800, especially if significant holders like Justin Sun continue to sell off their holdings. While some experts believe that Ethereum is still within a “safe zone,” others caution that low weekend trading volumes and uncertainty in the stock market could lead to increased volatility.
In conclusion, Justin Sun’s substantial Ethereum transactions have added to the existing strain on the market, prompting speculations about his motives. Investors are advised to exercise caution and closely monitor key support levels and whale movements as the market remains highly volatile.