- Tron founder Justin Sun’s recent transfer of a substantial amount of Ethereum to HTX exchange has sparked concerns of a potential sell-off.
- Despite the current bearish sentiment, analysts predict a potential Ethereum rebound in 2025 based on technical analysis and historical trends.
Tron Founder, and one of the prominent figures in the crypto industry has recently captured heightened attraction not only from Tron but from the second largest cryptocurrency by market cap, Ethereum. Tron founder Justin Sun continues to stir conversations in the crypto market with his substantial Ethereum deposits to HTX, formerly Huobi.
According to data from Spot On Chain, Sun transferred 29,153 ETH, valued at approximately $96.7 million, to the exchange. This brings his total Ethereum deposits to HTX since November 10 to 227,000 ETH, amounting to a staggering $807 million. These transactions, conducted at an average price of $3,556 per ETH, have sparked concerns of a potential sell-off, especially as Ethereum struggles to maintain its price above $3,300.
Due to Sun’s move, Ethereum has experienced consistent selling pressure, dropping another 2%. At the time of press, Ethereum’s ETH is swapping hands with $3,355.12 after a 1.69% drop in the past 24 hours. Additionally, the asset has plummeted 1.52% and 9.71% in the past week and month respectively, leading to a $403.97B market cap.
Upon noticing this, analysts and market participants forecast a potential price decline to $2,800 if the cryptocurrency fails to hold critical support levels. This bearish sentiment is amplified by Justin Sun’s significant Ethereum movements and the broader market’s inability to sustain bullish momentum above the $3,500 resistance.
In the same vein, Justin Sun has also unstaked 96,580 ETH, worth $322.7 million, from platforms like Lido Finance and EtherFi, possibly signaling further liquidity management strategies.
Notably, Sun took to the socials refuting rumprs of an imminent sell-off, characterizing these activities as routine wallet transfers, market participants remain cautious.
Despite the immediate bearish outlook, some analysts foresee a potential Ethereum rebound in the near future. Popular crypto analyst Charting Guy highlights a possible inverse head-and-shoulders pattern forming on Ethereum’s chart, suggesting a rebound from the $2,800 support level. Should this pattern play out, Ethereum could stage a dramatic rally in early 2025, potentially reaching as high as $7,080 by April.
Similarly, Crypto Rover predicts a bullish turn starting January 2025, citing historical trends of Bitcoin dominance peaking before altcoin surges. These optimistic projections offer hope to ETH investors amid current market turbulence.
Justin Sun’s Ethereum exchange activity has undeniably contributed to market anxiety, casting a shadow over Ethereum’s short-term price prospects. However, the potential for a significant rally in 2025, coupled with technical analysis indicating a possible rebound, provides a glimmer of hope for long-term investors. As the year draws to a close, Ethereum’s performance will hinge on market sentiment, Justin Sun’s next moves, and broader macroeconomic factors shaping the cryptocurrency landscape.
