Tron founder Justin Sun is making headlines yet again as he has recently chosen to offload 50% of his Ethereum (ETH) holdings, worth a staggering $143 million. This bold move comes at a precarious moment, leading many traders and investors to speculate whether an Ethereum price crash is imminent.
Following a frustrating rejection at the $4,000 mark last week, Ethereum experienced a sharp decline of 17%. Many market analysts are now suggesting that the price might drop below $3,000 once more before potentially climbing again. The crypto community is understandably on edge, with concerns rising over whale sell-offs and Sun’s significant moves within the market.
Sun has been actively liquidating his ETH since the cryptocurrency started its upward trend after Trump’s electoral victory. The latest sale, in which he dumped $143 million of ETH, contributed to the overall slump of the digital asset. As reported by blockchain analytics firm Spot On Chain, Sun redeemed 39,999 ETH from liquidity platforms Lido Finance and EtherFi, promptly depositing the entire amount into HTX.
Since November 10, when Ethereum began its upward surge, Sun has deposited a total of 108,919 ETH—worth roughly $400 million—into HTX at an average purchase price of $3,674. Interestingly, many of these deposits were made near local price peaks, raising eyebrows about Sun’s trading strategy.
Furthermore, Spot On Chain has revealed that Sun still holds 42,904 ETH (valued at $139 million) that is currently waiting to be unstaked from Lido Finance, which he may decide to send to HTX later. This adds to the uncertainty swirling around Ethereum’s future performance.
As the price struggles to maintain the crucial support level of $3,500, the market sentiment has shifted drastically, leaning toward bearish indicators for the leading altcoin. Analysts have voiced concerns that ETH might plunge to $2,800 amid aggressive sell-offs, particularly from whales like Sun himself.
Market analyst IncomeSharks pointed out that last weekend was a “low-volume weekend” for Ethereum, following a tumultuous week in the broader market. He reassured traders, indicating that it might not be the best time to sell. The On-Balance Volume (OBV) indicator, used to track trading pressure, remains stable despite buy-sell fluctuations, suggesting some lingering support for Ethereum.
Another prominent crypto analyst, who goes by the name I am Crypto Wolf, believes there could still be a bullish scenario forming. He highlighted a potential inverse head-and-shoulders (iHS) pattern emerging on the Ethereum price chart, implying a bullish trend could materialize. He believes this setup might provide the necessary momentum to break through the $4,000 barrier and target as high as $10,000 by May. Still, a retest of the $3,000 level may occur before any upward rally begins.
As we watch Justin Sun and his market maneuvers, one thing is certain: the next few weeks will be critical for Ethereum and its investors. With emotions running high and uncertainty looming over price forecasts, it’s essential to keep an eye on the market updates and trends shaping the future of Ethereum.
