Justin Sun’s major ETH transfer, coupled with a whale’s major accumulation, has stirred debates about Ethereum’s price trajectory.
As 2024 draws to a close, Ethereum finds itself in the spotlight, navigating large-scale transactions and their impact on its value. On-chain data shows that Tron founder Justin Sun moved 29,153 Ether ETH $1 603 24h volatility: 1.0% Market cap: $193.47 B Vol. 24h: $5.37 B worth $96.7 million to crypto exchange HTX in the past 12 hours. This move has sparked debates about potential sell-offs and their broader implications for the ETH market.
Notably, this transaction is part of a larger trend, with Sun transferring a total of 227,000 ETH, worth around $807 million, since November 10. His average acquisition price of $3,036 per ETH suggests a strategic liquidity play, though the timing has raised eyebrows.
In parallel, Justin Sun unstaked 96,580 ETH (worth around $322.7 million) from decentralized platforms, signaling potential future transfers to HTX. While Sun has dismissed fears of a sell-off as routine wallet management, the market remains wary.
As per the data by CoinMarketCap, Ether currently boasts a market cap of $407 billion. ETH has recorded a 1% drop in its value in the past 24 hours. It is currently trading around $3,380, well below its peak of $4,878 in November 2021. The second-largest cryptocurrency is down by 9% in the past month, with analysts anticipating a dip to $2,800 if selling pressure persists.
Major Whale Activity
Amid Ethereum’s price slide, a prominent whale has recently purchased 22,919 ETH worth $77.2 million, according to a December 31 report by Lookonchain. Interestingly, this whale is known for a stellar 84% win rate in 25 trades since August.
Historically, the whale’s strategic acquisitions have been followed by price recoveries, creating optimism around Ethereum’s short-term prospects. Analysts note the whale’s confidence in the $3,300 price level, hinting at a potential floor for ETH before a rebound.
Moreover, long-term data from IntoTheBlock shows that 75.1% of Ethereum holders have retained their assets for over a year, up from 59% earlier this year.
What Lies Ahead for Ether?
As Ethereum struggles to reclaim the $3,500 resistance level, its path forward remains uncertain. Market analysts note the possibility of an inverse head-and-shoulders pattern, with a key support level at $2,800 likely to determine the next move.
On a brighter note, popular analyst Charting Guy has shown a bullish outlook for ETH, predicting a rally to $7,080 by April 2025. Additionally, another famous trader Crypto Rover forecasts a rebound beginning as early as January 2025, tied to Bitcoin dominance cycles.
Meanwhile, spot Ether ETFs have also shown resilience to the recent price drops. In the past month, these funds have only faced outflows thrice, showcasing high institutional demand. Notably, these ETFs have amassed $2.62 billion since their launch in July.
Ethereum’s resilience will be tested as we transition into 2025 as it firmly positions itself on the radar of investors and institutions alike.
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