Story Highlights
- Justin Sun's massive ETH sell-off (worth ~$400 million) and unstaking activities have significantly impacted Ethereum's price.
- Ethereum faces downward pressure, recently dropping 17% with bearish sentiment prevailing.
- The market closely watches Sun's moves, as continued selling could further depress Ethereum's price.
Ethereum has underperformed this week, adding pressure to the broader crypto market. Tron founder Justin Sun intensified the drama with large-scale Ethereum transactions. Over the past week, Sun sold $143 million worth of ETH (~50% of his holdings), triggering a sharp price decline.
Key questions arise: Why is he offloading such volumes? Are there undisclosed motives behind these moves?
Let’s analyze the factors driving Ethereum’s drop and what may lie ahead.
Justin Sun’s Massive ETH Transactions
Blockchain data from Spot On Chain reveals that since November 10, Sun deposited 108,919 ETH (worth ~$400 million) into HTX (formerly Huobi). Most deposits occurred when Ethereum neared recent highs, averaging **$3,674 per ETH**.
Additionally, Sun recently redeemed 42,904 ETH ($139 million) from Lido Finance, sparking speculation about potential transfers to HTX. These large transactions have pressured Ethereum’s price, with the market feeling the strain.
Ethereum Price Under Pressure
- Current Price: $3,304 (17% drop from recent $4,000 peak)
- 24-Hr Change: -2.19%
- Trading Volume: Down 8.57%
Market Sentiment
- 54% of futures trades are short positions (long/short ratio: 0.8495).
- 78% of ETH holders remain profitable at current prices.
Key Technical Levels to Watch
- Critical Support: $3,260. A breakdown could push prices toward **$3,000**, with the 200-day MA as potential support.
- RSI: 39.28 (nearing oversold territory).
- ADX: Signals strong bearish momentum.
👉 Ethereum's next critical threshold could determine whether it stabilizes or faces further drops.
What’s Next for Ethereum?
The $3,260** hold is crucial. If broken, analysts warn of a slide to **$2,800, especially if whales like Sun keep selling. While some experts call this a "safe zone," others cite risks from low weekend liquidity and stock market volatility.
Sun’s actions amplify existing market weakness, fueling speculation. Investors should monitor key support levels and whale activity amid ongoing turbulence.
FAQs
1. Why did Ethereum’s price drop suddenly?
The decline stems from Justin Sun’s large ETH sell-offs ($143 million) and broader bearish sentiment, including unstaking activities.
2. What’s Justin Sun’s endgame?
Motives remain unclear, but his transactions align with profit-taking during ETH’s recent highs.
3. Should I buy Ethereum now?
Short-term risks persist. Watch the $3,260 support level and market sentiment before deciding.
👉 Expert insights on ETH recovery suggest cautious optimism for long-term holders.
Disclaimer
This content is for informational purposes only. Cryptocurrency investments carry high risks; conduct your own research before deciding.