Justin Sun’s ETH Sell-off Sparks Market Fears

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As a seasoned crypto investor with over a decade of experience in this wild and volatile market, I’ve learned to take news like Justin Sun’s ETH sell-off with a grain of salt. While it certainly adds fuel to the bearish sentiment currently surrounding Ethereum, it’s important to remember that every whale’s decision to buy or sell can have a significant impact on the market price. However, it doesn’t necessarily mean doom and gloom for ETH in the long run.

A recent update from the cryptocurrency sector indicates that Justin Sun, creator of Tron, could have liquidated approximately half of his Ethereum (ETH) reserves in the past week, amounting to roughly $143 million. As per information from blockchain analysis firm Spot On Chain, this significant sale took place over the said period. Here’s a breakdown of the current ETH data:

Meanwhile, Sun’s decline mirrors a broader trend of sell-offs, as ETH prices have persistently fallen since they were unable to break through the $4,000 resistance point. In the reviewed period, the price of ETH has decreased by 17%, intensifying pressure on Ethereum and leaving market participants speculating about potential future developments.

Ethereum Faces Uncertain Future amid Justin Sun’s Selling Spree

According to Spot On Chain’s findings, Sun previously converted approximately 39,999 Ether by utilizing services such as Lido Finance and EtherFi. Subsequently, this total sum was transferred into HTX, which was then known as the Huobi Exchange.

Since November 10, a total of approximately $400 million in Ethereum, equivalent to over 108,919 ETH, has been transferred from Sun to HTX.

Despite some reassurance, it’s important to note that the apprehensions in the market persist. It appears Sun retains 42,904 ETH (around $139 million) and is currently unstaking from Lido Finance. Thus, there’s a potential for him to deposit this amount into HTX as well.

Without question, the continuous selling sprees, notably by a well-known cryptocurrency influencer such as Sun, have significantly intensified the pessimistic outlook among traders and analysts regarding Ethereum’s price movement currently.

According to certain market analysts’ predictions, Ethereum’s price might drop below $3,000 in the short term. For example, well-known crypto expert “IncomeSharks” pointed out that Ethereum had a period of low trading activity over the weekend, which could make selling undesirable at this time. Additionally, the On-Balance Volume (OBV) indicator, used to gauge market demand and supply pressure, suggests that there may be more price decreases ahead, even though the OBV is currently steady.

Hope for ETH?

There’s a possibility that the bearish stance on Ethereum might be temporary. Some experts suggest that Ethereum could recover its pace quickly. Notably, crypto expert “I am Crypto Wolf” has pointed out a potential reversal pattern, the inverse head-and-shoulders (iHS), in Ethereum’s price chart. If this pattern materializes, it may propel ETH past the $4,000 barrier, as per his prediction. In the future, he anticipates that Ethereum could reach $10,000 by May next year.

According to his estimates, Ethereum may surge by late January. But it’s possible that Ethereum will revisit the $3,000 mark before this happens. However, current investors might find some returns, which could offer short-term market stability.

As of this publication, ETH was seen trading at $3,293.

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2024-12-23 12:43