The cryptocurrency market is feeling the heat of bearish momentum. Ethereum has had a tough week, and Justin Sun seems to be at the center of it. The Tron founder has been selling off his holdings of ETH, causing a stir in the market. In the past week, he sold $143 million worth of ETH, which is about half of his held ETH. His actions have led to a significant drop in Ethereum's price. The community has many questions about him. Is he playing a game that others are unaware of? There are more questions behind the issue of why Ethereum is dropping. Let's explore these factors.
Justin Sun: Selling and Staking
According to Spot on Chain data, since November 10, he has deposited 108,919 ETH into HTX (formerly Huobi), worth approximately $400 million. Most of these deposits occurred when prices were near their highs, averaging $3,674 per ETH.
Blockchain experts have noticed that Justin Sun is also withdrawing a large amount of staked ETH. Specifically, he recently withdrew 42,904 ETH from Lido Finance, worth $139 million. There are suspicions that he might also transfer these funds to HTX. With such frequent activity, it is not surprising that Ethereum's price has been struggling.
Ethereum Price Under Pressure
Ethereum's current trading price is $3,304. It has dropped 17% since recently falling to $4,000. In just the past 24 hours, it has dropped another 2.19%. Trading volume has also decreased by 8.57%.
Market sentiment is also not very good. Most traders seem to be bearish. Futures data shows that 54% of open positions are short, with a long-to-short ratio of 0.8495. But there is still a glimmer of hope—78% of Ethereum holders are in profit at the current price.
From a technical analysis perspective, Ethereum is approaching a key support level of $3,260. If it breaks below this level, the price could drop to $3,000, and the 200-day moving average might provide some stability. However, with the RSI at 39.28 (close to the oversold zone) and the ADX showing bearish momentum, the outlook is not optimistic.
What's next?
The biggest question is whether Ethereum can maintain above $3,260. If not, we might see it drop to $2,800, especially if whales like Justin Sun continue to sell off. Some analysts believe Ethereum is still in a 'safe zone' at the moment. But others warn that low weekend trading volume and stock market uncertainty could lead to more volatility. This might have already eliminated your curiosity about why Ethereum is dropping. Currently, investors should remain cautious. Price fluctuations in Ethereum are not new, but the market's reaction to Justin Sun's actions has made everyone pay more attention.
