Key Points
- Justin Sun, founder of Tron, reportedly sold half of his Ethereum (ETH) holdings, causing market concerns.
- Despite the sell-off, some analysts predict Ethereum could regain momentum and potentially exceed the $4,000 resistance level.
Justin Sun, the creator of Tron, is believed to have sold a significant portion of his Ethereum (ETH) holdings, according to recent reports from the cryptocurrency market. Data from blockchain analytics firm Spot On Chain indicates that Sun has sold 50% of his remaining ETH over the past week, equating to $143 million.
This sell-off by Sun follows a broader trend of sell-offs as ETH prices continue to fall, having failed to surpass the $4,000 resistance level. In fact, the price of ETH has dropped by 17% during the period under review, placing additional pressure on Ethereum and leaving market participants pondering the future.
Ethereum’s Uncertain Future Amidst Justin Sun’s Selling Spree
Spot On Chain has shown that Sun recently redeemed 39,999 ETH through platforms such as Lido Finance and EtherFi, before depositing the entire amount into HTX (formerly Huobi Exchange).
Overall, since November 10, Sun has transferred no less than 108,919 ETH into HTX, which is approximately $400 million worth of Ethereum. However, market fears are not over yet. Sun still holds 42,904 ETH (around $139 million), which is currently unstaking from Lido Finance. Therefore, it’s entirely possible that he may deposit this amount into HTX as well.
These ongoing sell-offs, particularly by a high-profile figure like Sun, have undoubtedly contributed to the current bearish sentiment for Ethereum. Some market experts predict that Ethereum’s price could drop below the $3,000 mark in the near future.
Is There Hope for Ethereum?
Despite the bearish outlook, some analysts believe Ethereum could soon regain its momentum. A well-known crypto strategist identified a potential inverse head-and-shoulders (iHS) pattern forming on the Ethereum price chart. If this pattern is confirmed, it could push ETH beyond the $4,000 resistance level.
This strategist suggests that Ethereum may experience a breakout by late January. However, he also noted that Ethereum might first retest the $3,000 level before rallying. Despite the recent sell-off, those who have recently purchased Ethereum are still making some profit, which could provide temporary support for the market.
At the time of reporting, ETH was trading at $3,293.
