In the past week, the price of Ethereum surged 29% to $3,200, and Tron founder Justin Sun cashed out part of his ETH investment. Reports indicate that dormant ETH whales have also become active by selling off their holdings. Investors are waiting to see how the largest altcoin reacts to these developments.
Tron founder Justin Sun sells ETH
While taking advantage of last week's Ethereum price increase, the founder of Tron has been making hefty profits. About 15 hours ago, Justin Sun deposited 19,000 ETH (worth approximately $60.83 million) to HTX at a price of $3,202 per ETH.
Thus, his total profit from these transactions is estimated at $69.36 million, up nearly 5.69% after the recent surge in Ethereum prices. According to data from SpotonChain, Justin Sun's deposit is part of the 392,474 ETH he allegedly acquired between February 8 and August 5 through three wallets.
His average purchase price of ETH is $3,027, with an estimated total investment of $1.19 billion. Therefore, compared to the total value of the ETH held by Justin Sun, the recent sell-off is negligible and does not indicate an increase in his concerns.
Additionally, according to data from PeckShield Alert, an early Ethereum ICO participant reactivated their holdings after nearly three years of inactivity, transferring 1,555 ETH worth about $5 million to the cryptocurrency exchange Coinbase.
This wallet holder originally acquired 6,292 ETH during the Ethereum initial coin offering (ICO) with an investment of only $1,951. The participant's total holdings are now approximately $20.15 million, a significant increase since the ICO.
Are dormant Ethereum whales unloading?
Lookonchain data shows that an Ethereum whale holding 398,891 ETH (worth $1.28 billion) sold 46,853 ETH at a price of $2,920 since November 7, exchanging it for $138.8 million in USDC. In the past few hours, the same whale transferred another $42 million worth of 12,886 ETH to the exchange. Therefore, this whale still holds 352,036 ETH, worth $1.27 billion.
This indicates that although Ethereum whales continue to hold large amounts of assets, they are still eyeing some profit-taking opportunities in the current rebound.
In the past week, the price of Ethereum increased by 30%, currently trading close to $3,200, with a market cap slightly below $400 billion. More and more people are calling for Ethereum to set a new all-time high; however, from now on, this altcoin still needs to rise 60% to reach a new peak.
Cryptocurrency market analyst Michael van de Poppe states that the ETH price may encounter some resistance around $3,200 before further movement occurs. However, he expects the Ethereum ecosystem to perform exceptionally well in the coming months.
On the other hand, after Donald Trump's victory, the inflow of spot Ethereum ETFs turned healthy again.
Blockchain analysis platform Santiment reports: 'Any growth in Bitcoin during this bull market is expected to lead to profit redistribution to Ethereum, potentially pushing it toward all-time highs, while its network activity appears very healthy.'
