Why did Ethereum drop today? Justin Sun's sale of 143 million dollars caused trouble
Why did Ethereum drop today? This is related to Justin Sun. He recently sold a large amount of Ethereum (ETH) and also canceled his staking, resulting in a price drop for Ethereum.
Ethereum has recently dropped quite significantly, down 17%, and market sentiment is bearish. Everyone is watching Justin Sun; if he continues to sell, the price of Ethereum will likely drop further.
Justin Sun's actions are indeed surprising. According to blockchain data, he recently deposited a lot of Ethereum into HTX (formerly known as Huobi), worth about 400 million dollars. Additionally, he redeemed 42,904 Ethereum from Lido Finance, valued at 139 million dollars. With such large transactions, how can the market not be nervous?
Currently, the price of Ethereum has dropped to 3,304 dollars, down significantly from the previous 4,000 dollars. It fell another 2.19% within 24 hours, and trading volume decreased by 8.57%. Market sentiment is also not good, with 54% of futures trading being short positions.
However, there is still hope. Currently, 78% of Ethereum holders are still making a profit. But if it falls below the critical support level of 3,260 dollars, the price may continue to drop to 3,000 dollars. The 200-day moving average may provide some support, but the Relative Strength Index (RSI) is already close to the oversold area, and the Average Directional Index (ADX) also shows a strong bearish momentum.
Now, what everyone is most concerned about is whether Ethereum can hold above 3,260 dollars. If it cannot, the price may drop all the way to 2,800 dollars, especially if large holders like Justin Sun continue to sell. Although some experts believe Ethereum is still in a 'safe zone', low trading volume over the weekend and an unstable stock market may lead to more volatility in the market.
Justin Sun's trading of Ethereum has indeed caused a lot of chaos in the market, and his motives remain unclear. The market is still quite unstable, and investors need to be cautious, paying close attention to key support levels and the movements of large holders.
In the upcoming layout direction, I will guide everyone to aim for the lucrative opportunities in altcoins, especially those projects with high potential. A projected space of over 10 times is not a problem. If you want to make big money in a bull market, like and comment, and I'll help you layout the entire bull market!
