Tron founder Justin Sun has initiated the withdrawal of 52,905 Ethereum (ETH) from Lido Finance. It amounts to a substantial $209 million. This comes days after Tron founder Justin Sun successfully raised 52, 905 Ethereum (ETH), worth $209 million. This could have some effect on ETH price.
It’s part of a bigger Ethereum heavy lifting that Sun has done this. He has added huge degrees of himself to Ethereum. From February to August, according to records, Sun used three wallets to buy 392,474 ETH, spending about $1.19 billion.
These investments have been a boon to his portfolio, which has since seen a $349 million profit, equaling a 29 percent return on investment.
Sun’s Market Influence and Ethereum’s Response
These strategic movements in purchasing and taking big chunks of Ethereum always end up causing speculations on the market impacts.
Figures like his decision to unstack 80,251 ETH on October 4, 2023, and later transfer these holdings to Binance over the next four days, saw Ethereum’s market price take a noticeable 5% dip from mid-October.
It looks like Sun’s action might signal short-term volatility for Ethereum’s market value in general.
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Justin Sun (@justinsuntron) applied to withdraw 52,905 $ETH (now $209M) from #LidoFinance an hour ago.
This is part of the net 392,474 $ETH he allegedly bought at ~$3,027 ($1.19B) via 3 wallets from Feb-Aug, now having an est. total profit of $349M (+29%).
Note that on Oct 4,… https://t.co/r5z7l8YSUq pic.twitter.com/GAalq1imjO
— Spot On Chain (@spotonchain) December 16, 2024
The market’s sensitivity to high-profile transactions has not been indicative of Ethereum’s price trajectory as the token trades in the green, above $3,900, 2% higher than the previous day as of press time.
The rise itself is pushing the cryptocurrency towards a critical $4,000 level, a psychological barrier. If crossed, it could be viewed as strong market confidence and attract more investment.
Technical Outlook on ETH Price
On the detailed price charts, one can see a responsive behavior of recent price movements of Ethereum to market stimuli. The red and green candles represent a series of price oscillations over the period.
There is a noticeable pattern in the form of a falling wedge, which is considered generally a bullish pattern in technical analysis. We see a breakout to the upside which was later met with resistance causing some correction.
The resistance zone is around the $3,960 to $4,040 price level is this zone. In the last green candle that made contact with this price and the subsequent red candle, the price recently tried to break this zone but failed, as represented above.
We also notice that the MFI is at 66.49, which is quite high. This implies there has been more buying pressure on ETH price than usual in recent times but also warns that overbought could happen soon. This could imply a temporary pullback or consolidation.
If the price instead erases the wedge and breaks through the resistance zone around $4,000, it could mean further impetus for the upward trend towards the next targets of $4,040 or even further.
However, a failed breakout, with the price failing to sustain the breakout and fall back inside the wedge, or below it, may imply a false breakout and a possibility of a bearish reversal. Targets in this case might be retracted into the lower part of the wedge or earlier support levels.
