Key Points
- Tron founder Justin Sun’s large-scale Ethereum transfers have led to speculation about potential sell-offs and their impact on Ethereum’s value.
- Major whale activity and Ethereum’s resilience amid price drops suggest potential for price recovery and continued investor interest.
As we approach the end of 2024, Ethereum is in the limelight due to high-volume transactions and the subsequent effects on its value.
On-chain data reveals that Justin Sun, the founder of Tron, transferred 29,153 Ethereum, equivalent to $96.7 million, to the crypto exchange HTX within the past 12 hours. This has triggered discussions about possible sell-offs and their wider implications for the Ethereum market.
Justin Sun’s Ethereum Transfers
This transaction is part of a larger pattern, with Sun transferring a total of 227,000 Ethereum, valued at approximately $807 million, since November 10. His average purchase price of $3,036 per Ethereum suggests a strategic liquidity move, although the timing has raised some questions.
Simultaneously, Justin Sun unstaked 96,580 Ethereum (valued at around $322.7 million) from decentralized platforms, indicating potential future transfers to HTX. Despite Sun’s dismissal of sell-off fears as normal wallet management, the market remains cautious.
According to CoinMarketCap data, Ethereum currently has a market cap of $407 billion. Ethereum has seen a 1% decrease in its value in the past 24 hours and is currently trading around $3,380, significantly below its November 2021 peak of $4,878. The second-largest cryptocurrency has fallen by 9% in the past month, with analysts predicting a drop to $2,800 if selling pressure continues.
Major Whale Activity and Ethereum’s Future
Despite Ethereum’s price decline, a notable whale recently bought 22,919 Ethereum worth $77.2 million, as reported by Lookonchain on December 31. Interestingly, this whale is recognized for an impressive 84% win rate in 25 trades since August.
Historically, the whale’s strategic purchases have been followed by price recoveries, fostering optimism about Ethereum’s short-term prospects. Analysts point out the whale’s confidence in the $3,300 price level, suggesting a potential bottom for Ethereum before a rebound.
Moreover, long-term data from IntoTheBlock indicates that 75.1% of Ethereum holders have held onto their assets for over a year, up from 59% earlier this year.
As Ethereum battles to regain the $3,500 resistance level, its path forward remains unclear. Market analysts mention the possibility of an inverse head-and-shoulders pattern, with a key support level at $2,800 likely to influence the next move.
On a positive note, popular analyst Charting Guy has presented a bullish outlook for Ethereum, forecasting a rally to $7,080 by April 2025. Additionally, another renowned trader, Crypto Rover, predicts a rebound starting as early as January 2025, linked to Bitcoin dominance cycles.
Meanwhile, spot Ether ETFs have also demonstrated resilience to the recent price drops. In the past month, these funds have only faced outflows three times, indicating high institutional demand. Notably, these ETFs have accumulated $2.62 billion since their launch in July.
As we move into 2025, Ethereum’s resilience will be put to the test as it continues to attract the attention of investors and institutions.
