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Tron founder Justin Sun has been heavily selling his held ETH, and the Ethereum price plummeted 17% after being rejected at $4,000. In the past 7 days, Justin Sun has sold another 50% of his ETH, worth $143 million. Market analysts predict that the ETH price may fall below $3,000 again before recovering upward momentum.
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Tron's Justin Sun talks about the ETH selling frenzy
Since Donald Trump won the election, the Ethereum price has regained an upward trend, and Justin Sun has started to massively sell Ethereum. This situation even continued until last week, when the Tron founder sold $143 million worth of ETH, causing Ethereum to plummet more than 15% during the crypto market crash.
Blockchain analytics firm Spot On Chain reported that Justin Sun redeemed 39,999 ETH (worth $143 million) from the liquidity staking platforms Lido Finance and EtherFi. Subsequently, he deposited the entire amount into HTX.
Since November 10, as the Ethereum price has shown an upward trend, Justin Sun has deposited a total of 108,919 ETH (worth $400 million) into HTX, at an average price of $3,674. Notably, many of these deposits occurred near local price peaks.
Spot On Chain also revealed that Justin Sun currently has 42,904 ETH (worth $139 million) being withdrawn from Lido Finance. The Tron founder may later send this fund to HTX.
Will Ethereum price fall below $3,000?
With Ethereum price losing the critical $3,500 support level, the sentiment for the largest Altcoin has turned bearish. Last week, crypto market analysts held a bearish outlook on Ethereum, expecting the ETH price to drop to $2,800 due to whale selling.
Renowned market analyst IncomeSharks stated that after a turbulent week in the stock market, Ethereum's weekend trading volume was "relatively low". The analyst added that now is not a good time to sell.
The On-Balance Volume (OBV) indicator, a tool to measure buying and selling pressure, remains stable and oscillating within a channel. Recent Ethereum buyers are still in profit, providing some support to the market. However, the chart shows Ethereum still has room to fall to $3,000.
Renowned crypto analyst "I am Crypto Wolf" also emphasized the bullish outlook and pointed out a potential inverted head and shoulders (iHS) pattern. According to the analyst, the Ethereum price chart is currently forming the "right shoulder" of an iHS continuation pattern.
This setup could provide the momentum needed to break above the $4,000 resistance and target $10,000 by May. He noted that the breakout is expected to occur by the end of January, but there is still a possibility of retesting the $3,000 level before the rally begins.
