- Tron founder Justin Sun’s aggressive ETH selloff, totaling $143 million last week, has contributed to a 17% price drop.
- Despite this, bullish technical patterns suggest Ethereum could recover and target $10,000 in 2024 after retesting lower support levels.
Tron founder Justin Sun’s aggressive ETH selling spree has drawn significant attention in the crypto community, particularly as Ethereum struggles to maintain key support levels. Sun’s recent offloading of ETH has coincided with a sharp downturn in Ethereum’s price, leaving analysts and investors questioning the broader implications for the second-largest cryptocurrency by market cap.
As we have previously reported, Justin Sun has been systematically selling Ethereum, with his latest move involving the liquidation of 39,999 ETH, valued at $143 million. Blockchain analytics firm Spot On Chain reported that Sun redeemed these tokens from liquid staking platforms Lido Finance and EtherFi before depositing the proceeds into HTX (formerly Huobi Exchange).
This recent transaction follows a broader trend: since November 10, Sun has sold a total of 108,919 ETH worth approximately $400 million. The sales predominantly occurred near Ethereum’s local price peaks, suggesting a strategy to capitalize on short-term gains. Currently, Sun has another 42,904 ETH (valued at $139 million) in the process of unstaking from Lido Finance, potentially signaling additional sell pressure.
Impact on ETH’s Price
The timing and scale of Sun’s sales have contributed to significant market turbulence. Ethereum’s price has dropped by 17% over the past week, plummeting from near $4,000 to below $3,500. Analysts are now warning that Ethereum could test the $3,000 support level before mounting its next rally.
Popular crypto analyst IncomeSharks observed that Ethereum experienced a “low-volume weekend” after a volatile week for broader markets. The On-Balance Volume (OBV) indicator remains steady, suggesting some market stability. However, the selling pressure from whales like Sun has cast a bearish shadow, increasing the likelihood of further dips.
While short-term sentiment appears bearish, some analysts maintain a bullish outlook for Ethereum. Prominent chartist “I am Crypto Wolf” pointed out that Ethereum’s price is forming an inverse head-and-shoulders (iHS) continuation pattern. If this setup holds, it could provide the momentum needed for Ethereum to surpass the $4,000 resistance and target $10,000 by mid-2024.
However, before a breakout occurs, analysts believe Ethereum might retest the $3,000 level. Such a dip could attract buyers seeking an entry point for the anticipated long-term rally.
Justin Sun’s ETH selling spree has undoubtedly amplified market volatility, pushing Ethereum prices lower and sparking bearish sentiment. However, the long-term prospects for Ethereum remain strong, with bullish technical patterns hinting at a potential recovery. For now, investors will be closely monitoring Sun’s next moves and their impact on the broader market.
Meanwhile, the second largest digital asset by market cap is swapping hands with $3,439.70 after a 3.64% surge in the past 24 hours. Additionally, with a market cap of $413.99B, the asset has recorded a decline of 14.11% in the past week.
