Coinspeaker Justin Sun’s ETH Sell-off Sparks Market Fears
One of the latest reports from the cryptocurrency market is that Justin Sun, the founder of Tron, may have sold off a notable portion of his Ethereum (ETH) holdings. According to data from blockchain analytics firm Spot On Chain, Sun offloaded 50% of his remaining ETH ETH $3 331 24h volatility: 1.0% Market cap: $400.91 B Vol. 24h: $30.57 B over the past week, at the rate of $143 million.
Sun’s sell-off, meanwhile, follows a larger pattern of sell-offs as ETH prices have continued to drop since failing to overcome the $4,000 resistance level. As a matter of fact, ETH price has dropped 17% in the period under review, putting Ethereum under more pressure and leaving market participants wondering what may be next.
Ethereum Faces Uncertain Future amid Justin Sun’s Selling Spree
As Spot On Chain showed, Sun recently redeemed 39,999 ETH through platforms like Lido Finance and EtherFi. That was before he later deposited the entire amount into HTX (formerly Huobi Exchange).
In total, Sun has moved no less than 108,919 ETH into HTX since November 10. That is about $400 million worth of Ethereum.
For what it might be worth, though, the fears within the market are not over. Apparently, Sun still holds 42,904 ETH (approximately $139 million), which is currently unstaking from Lido Finance. So, it remains a good possibility that he also deposits even this one into HTX.
All of these ongoing sell-offs, especially by a prominent crypto figure like Sun, have, without a doubt, contributed hugely to the bearish sentiment for Ethereum that traders and analysts gold at the moment.
By the accounts of some market experts, it is likely that Ethereum’s price falls below the $3,000 mark in the near term. For instance, popular crypto analyst “IncomeSharks” noted that Ethereum had a “low-volume weekend,” making it an unsuitable time to sell. The On-Balance Volume (OBV) indicator, which measures market buying and selling pressure, also shows that there may be further dips. That is, despite the OBV being stable for now.
Hope for ETH?
Just maybe, the bearish outlook is but for a limited time. Some analysts are saying that it is possible for Ethereum to regain its momentum soon. Prominent crypto strategist “I am Crypto Wolf” identified a potential inverse head-and-shoulders (iHS) pattern forming on the Ethereum price chart. If this pattern were to be confirmed, it could take ETH beyond the $4,000 resistance level, says the popular analyst. In the long term, he shares that ETH could even hit $10,000 by next May.
By his calculations, Ethereum should break out by late January. However, the analyst noted that Ethereum might first retest the $3,000 level before rallying. Nonetheless, recent buyers are still making some sort of profit, which could be enough to act as temporary support for the market.
As of this publication, ETH was seen trading at $3,293.
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Justin Sun’s ETH Sell-off Sparks Market Fears
