The Ethereum market may be in for a rough ride as Justin Sun, the visionary behind Tron (TRX), has recently unstaked a staggering $209 million from Lido Finance, a platform known for its liquid decentralized staking of Ethereum. Unlike Bitcoin (BTC) and Dogecoin (DOGE), Ethereum’s price trajectory has remained relatively subdued, having soared to an impressive $4,000 only to consolidate without further upward momentum. If Sun opts for additional sell-offs, Ethereum’s value could face a significant downturn.
Significant ETH Movements by Justin Sun
Spot On Chain, an AI-powered cryptocurrency analytics platform, has unveiled that Sun recently withdrew an astonishing 52,905 ETH tokens, valued at approximately $209 million, from Lido Finance. On-chain data suggests that this withdrawal is part of a substantial Ethereum reserve Sun reportedly amassed between February and August 2024. During this timeframe, the total Ethereum purchased by Sun amounted to 392,474 ETH tokens, with a valuation of $1.19 billion, acquired through three distinct wallet addresses at an average price of $3,027. The Tron founder’s total profit since these acquisitions is estimated to be $349 million, marking a 29% increase from the purchasing price.
Back on October 24, Sun unstaked a significant 80,251 ETH tokens, worth over $131 million, from Lido Finance. Shortly after, he transferred the entire amount to Binance, the world’s largest cryptocurrency exchange. This move occurred just prior to a sharp 5% decline in Ethereum’s price in mid-October, which might have resulted in financial loss for Sun. Notably, this isn’t the first instance of Sun liquidating Ethereum holdings. Earlier disclosures this month from Spot On Chain highlighted Sun’s pattern of capitalizing on Ethereum holdings amid market rallies.
For instance, in November, Sun deposited 19,000 ETH, equivalent to $60.83 million, into HTX, a cryptocurrency exchange. He further transferred 29,920 ETH, valued at $119.7 million, to HTX again after Ethereum’s price surpassed $4,000 within the past week. These transactions are part of a series of significant ETH movements by Sun over the last month.
Is an Ethereum Price Decline Imminent?
Although Sun has not publicly addressed his recent large-scale Ethereum withdrawals, the magnitude and timing of these transactions could potentially disrupt the altcoin’s future price trajectory. Historically, substantial ETH liquidations have precipitated price crashes due to heightened selling pressures. If Sun persists with further sell-offs, the already fragile Ethereum market might experience heightened volatility. The crucial question remains whether Sun will continue his Ethereum liquidation spree.
Market Dynamics and Future Outlook
As Ethereum’s price remains unstable yet attempts to rally upwards, further large-scale ETH sell-offs could intensify market volatility, particularly if other investors or large stakeholders follow suit. Despite the current uncertainties, Ethereum’s performance has shown resilience, with a more than 7% increase in the past seven days and a 28% surge over the last month, as reported by CoinMarketCap. Ethereum’s price struggles to establish robust support at the $4,000 mark, suggesting potential challenges and opportunities ahead for this leading cryptocurrency.
