Tron founder Justin Sun has sparked waves across the crypto market by aggressively liquidating his Ethereum holdings. Over the past week, Sun offloaded 39,999 ETH worth $143 million, coinciding with Ethereum’s price plummeting by 17% after being rejected at the $4,000 resistance level. Analysts suggest the market could face further downward pressure, with Ethereum potentially dipping below $3,000 before any signs of recovery emerge.
Justin Sun’s Aggressive Ethereum Sell-Off
Sun has been on a selling spree, unloading Ethereum during key price rallies since the U.S. election results. Blockchain analytics firm Spot On Chain revealed that the Tron founder redeemed the latest batch of 39,999 ETH from liquid staking platforms Lido Finance and EtherFi, transferring the full amount to HTX.
Since mid-November, Sun has sold a total of 108,919 ETH, valued at approximately $400 million, at an average price of $3,674. Interestingly, these deposits frequently occurred during local price peaks, potentially exacerbating Ethereum’s recent price slump.
Adding to the market jitters, Sun has another 42,904 ETH worth $139 million currently unstaking from Lido Finance. Market watchers believe these funds could also be funneled into HTX, amplifying selling pressure.
Bearish Dip or Bullish Reversal?
Ethereum’s price has breached critical support at $3,500, turning market sentiment bearish. Popular crypto analyst IncomeSharks noted last weekend’s low trading volume, suggesting that immediate sell-offs may not be ideal given the current volatility.
The On-Balance Volume (OBV) indicator shows steady buying and selling activity, with recent buyers still in profit. However, this support might not hold, as technical charts indicate room for Ethereum to test the $3,000 mark.
Not all outlooks are bearish, though. Prominent analyst “I am Crypto Wolf” pointed to a developing inverse head-and-shoulders (iHS) pattern, which could trigger a bullish breakout by late January. If the pattern holds, Ethereum could target $10,000 by May 2025, though a retest of $3,000 seems likely in the short term.
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