Tron founder Sun Yuchen has been selling off large amounts of his held ETH, with the Ethereum price plunging 17% after being rejected at the $4,000 price level. In the past 7 days, Sun Yuchen sold another 50% of his ETH, worth $143 million. Market analysts predict that the ETH price may drop below $3,000 again before recovering upward momentum.
Tron's Sun Yuchen talks about the ETH sell-off frenzy.
Since Donald Trump won the election, the price of Ethereum has resumed its upward momentum, and Sun Yuchen has begun to sell off Ethereum in large quantities. This situation continued until last week, when the Tron founder sold $143 million worth of ETH, causing the price of Ethereum to drop over 15% during the cryptocurrency market crash.
Blockchain analytics company Spot On Chain reports that Sun Yuchen redeemed 39,999 ETH (worth $143 million) from the liquidity staking platforms Lido Finance and EtherFi. Subsequently, he deposited the entire amount into HTX.
Since November 10, as the price of Ethereum has risen, Sun Yuchen 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Spot On Chain also revealed that Sun Yuchen currently has 42,904 ETH (worth $139 million) being withdrawn from Lido Finance. The Tron founder may send this fund to HTX later.
Is the Ethereum price about to fall below $3,000?
As Ethereum's price loses the critical 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, expecting the ETH price to drop to $2,800 due to whale sell-offs.
Famous market analyst IncomeSharks stated that after a tumultuous week in the stock market, Ethereum's weekend trading volume is 'low.' The analyst added that now is not a good time to sell.
The On-Balance Volume (OBV) indicator is a tool to measure buying and selling pressure, currently remaining stable and fluctuating within a channel. Recent Ethereum buyers are still taking profits, providing some support for the market. However, the chart below shows that Ethereum still has room to drop to $3,000.
Famous cryptocurrency analyst 'I am Crypto Wolf' also emphasized the bullish outlook and pointed out the potential for an inverted head and shoulders (iHS) pattern. According to the analyst, the Ethereum price chart is currently forming the 'right shoulder' of the iHS continuation pattern.
This setup could provide the momentum needed to break through 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 could still be a retest of the $3,000 level before the rebound begins.
