Tron founder Justin Sun has been selling off a large amount of his held ETH, and the Ethereum price plummeted 17% after being rejected at the $4,000 price point. In the past 7 days, Justin Sun has sold another 50% of his ETH, worth $143 million. Market analysts predict that ETH prices may again drop below $3,000 before regaining upward momentum.

Tron's Justin Sun talks about the ETH sell-off frenzy

Since Donald Trump won the election, Ethereum prices have regained upward momentum, and Justin Sun has started to sell off Ethereum in large quantities. This situation continued until last week when the Tron founder sold $143 million worth of ETH, causing Ethereum prices to drop more than 15% during the cryptocurrency market crash.

Blockchain analysis firm Spot On Chain reported that Justin Sun redeemed 39,999 ETH (worth $143 million) from the liquid staking platform Lido Finance and EtherFi. He then deposited the entire amount into HTX.

Since November 10, as Ethereum prices have shown an upward trend, Justin Sun has deposited a total of 108,919 ETH (worth $400 million) into HTX at an average price of $3,674. Notably, many of these deposits occurred near local price peaks.

Spot On Chain also revealed that Justin Sun currently has 42,904 ETH (worth $139 million) withdrawing from Lido Finance. The Tron founder may send this fund to HTX later.

Is Ethereum's price about to drop below $3,000?

As Ethereum prices lost the key support level of $3,500, market sentiment for the world's largest altcoin has turned bearish. Last week, cryptocurrency market analysts held a bearish outlook on Ethereum, predicting that ETH prices would drop to $2,800 due to whale sell-offs.

Famous market analyst IncomeSharks stated that following a week of stock market turmoil, Ethereum's weekend trading volume was 'low'. The analyst added that now is not a good time to sell.

The On-Balance Volume (OBV) indicator measures buying and selling pressure and is currently stable, fluctuating within a channel. Recent Ethereum buyers are still taking profits, providing some support to the market. However, the chart below shows that Ethereum still has room to drop to $3,000.

Well-known cryptocurrency analyst 'I am Crypto Wolf' also emphasized the bullish outlook, noting that an inverse head and shoulders (iHS) pattern may emerge. According to the analyst, the Ethereum price chart is currently forming the 'right shoulder' of the iHS continuation pattern.



This setup may provide the momentum needed to break the $4,000 resistance level and aim for a target of $10,000 before May. He noted that a breakout is expected by the end of January, but there is still a possibility of retesting the $3,000 level before the rebound begins.