Recently, Justin Sun made a notable move by withdrawing 52,905 ETH from Lido Finance, with an estimated total value of around $209 million. Combined with his previous ETH transactions, this action has sparked speculation that the ETH market could be significantly affected.
Sun has accumulated 392,474 ETH in three wallets with an estimated value of $1.19 billion, according to blockchain analytics firm Spot On Chain. At the time of writing, the net profit from these transactions is $349 million, up 29%.
The founder of the Tron blockchain conducted large transactions from February to August this year. In October 2023, Sun unlocked 80,251 ETH (worth $131 million at the time) from Lido and transferred it to Binance within four days.
After this transaction, the ETH price dropped by 5% in mid-month. Thus, the recent withdrawal has raised similar concerns, with some analysts predicting short-term price pressure on the top altcoin by market cap as the market watches Sun's actions.
Source: Spot On Chain
ETH is lagging behind Bitcoin in terms of gains for 2024
ETH price has increased by 71.5% since the beginning of the year. However, it still underperformed compared to Bitcoin, which saw an impressive gain of 142% during the same period.
Although ETH's performance is commendable, its trajectory has not kept pace with Bitcoin's rapid growth to new highs, raising questions among some investors about whether ETH can achieve a new all-time high (ATH).
According to a recent tweet, Chinese journalist Colin Wu reported that the total value locked (TVL) of Ethereum increased by $2.22 billion in the past week, slightly slower than Bitcoin's increase of $3.09 billion. From December 9 to December 13, Ethereum spot ETFs recorded a net inflow of $855 million, marking a record high for weekly inflows.
Source: Colin Wu
Leading the inflow of Ethereum ETFs was BlackRock's ETHA ETF, which received $523 million, and Fidelity's FETH ETF attracted $259 million during the same period.
Analysts believe that the inflow of funds into ETFs could bolster the stability of ETH prices, even amid short-term market volatility.
Technical indicators suggest potential breakout
Meanwhile, ETH's technical charts are lighting up optimistic signals. According to some analysts, the ETH chart shows patterns similar to the last time it reached ATH in 2022, with the recent appearance of a 'Golden Cross' on the weekly chart – a technical indicator signaling potential upward momentum.
Analyst CryptoRus noted that the last time ETH exhibited this pattern was in early 2021, prior to a remarkable 200% price increase within ten weeks.
The EMA50 trendline supports ETH prices from below and further strengthens the optimistic outlook. Analysts believe that breaking the resistance level of $3,845 could pave the way for a move towards $4,000 and beyond.
Source: X
However, falling below this level would trigger a short-term correction, with potential downside targets around $3,680 before another upward move.
Long-term ETH price forecast
The long-term potential of ETH continues to attract speculative forecasts. For example, Bybit and Block Scholes have predicted a price target of $8,800 in the first quarter of 2025. These predictions are supported by ETH's solid performance in the derivatives market and the formation of an ascending triangle, indicating sustainable upward momentum.
Meanwhile, analyst Titan of Crypto shares the same view, suggesting that ETH could rise above $5,000 by 2025. These forecasts largely depend on historical technical patterns and the increasing acceptance of Ethereum by institutions.
ETH price chart 4 hours | Source: Tradingview
At the time of writing, ETH is trading at $3,904, up 0.34% in the past 24 hours.
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