Justin Sun’s Repeated ETH Sales Spark Market Fears

Highlights:

• Justin Sun’s repeated ETH sales have elicited significant price drop concerns among market participants.
• Ethereum price has plunged below $3,500 as the token continues to struggle.
• The Tron founder still boasts considerable ETH holdings with high chances of depositing them into exchanges.

Chinese-born cryptocurrency businessman and Tron (TRX) founder Justin Sun recently triggered another massive Ethereum (ETH) sale, eliciting price decline fears among Ethereum enthusiasts. As usual, renowned on-chain crypto transactions tracker Spotonchain spotted the latest exchange deposits in one of its tweets, which has attracted considerable attention.

In the X post, Spotonchain noted that over the past seven days, the Tron founder redeemed approximately 39,999 ETH  from Lido Finance and Etherfi. After redeeming the Ethereum tokens valued at about $143 million, Sun eventually deposited them into HTX (formerly Huobi Exchange).

Still on the same tweet, the on-chain tracker noted that since Ethereum’s price began to go parabolic on November 10, the Chinese entrepreneur has dumped 108,919 ETH valued at about $400 million to HTX. Spotonchain added that the sales occurred near local highs at an average price of $3,674 per token.

Despite the massive sales, the on-chain outlet noted that the Tron founder still holds 42,904 ETH worth roughly $139 million. Per Spotonchain, the remaining Ethereum stores are unstakingn from Lido, which implies that Sun will likely deposit them into HTX soon.

Over the past 7 days, Justin Sun (@justinsuntron) redeemed 39,999 $ETH ($143M) from Lido Finance and Etherfi and then deposited all to #HTX.

Since Nov 10, as the ETH price began rising, he has deposited 108,919 $ETH ($400M) to HTX at an average price of $3,674, often near local… https://t.co/nMGxZ5YLLa pic.twitter.com/5nu4jT0Doo

— Spot On Chain (@spotonchain) December 23, 2024

Growing Market Concern

In crypto, actions like those elicited by the Tron founder are renowned for eliciting price declines, especially when they become a trend. While it seems plausible that Sun deposited the tokens to take profits, his persistent sell-offs have raised significant concerns.

The market concerns seemed more glaring considering Ethereum’s recent price struggles. If Sun’s consistent sell-offs persist, chances abound that the token could suffer more declines, possibly concluding 2024 below $3,500.

Ethereum’s Price Struggles

At the time of press, Ethereum is changing hands at about $3,330, reflecting a 0.8% decline in the past 24 hours. Within the same time frame, the world’s most valuable altcoin reflected price extremes ranging between $3,224.07 and $3,391.54.

In a weekly timeframe, ETH displayed a 15.6% decline, with minimum and maximum price levels fluctuating between $3,114.57 and $4,078.09. Notedly, other extended period price change variables reflected declines, highlighting Ethereum’s market struggles. For context, the token’s 14-day-to-date and month-to-date statistics displayed declines of approximately 14.2% and 0.7%, respectively.

Despite the poor market actions, Ethereum’s 24-hour trading volume is slightly up by about 6.69% and boasts about $29.78 billion in valuation. Meanwhile, following the recent declines, Ethereum market capitalization dropped to approximately $403.06 billion.

Ethereum ETFs Turn Red

Aside from Sun’s concerning sell-offs, every other factor seemed to work against the world’s most valuable altcoin. After eighteen consecutive inflows, Ethereum ETFs finally turned red. Per SosoValue ETF flow statistics, the commodities recorded outflows valued at about $60.47 million on December 19 and another $75.12 million loss on December 20.

📊 Ethereum ETF Weekly Tracker | 2024-12-16 to 2024-12-20

🟩 Weekly Total Net Inflow: +$62.73M
💰 Total Value Traded $4.57B
🏦 Total Net Assets $12.15B
📊 ETF Market Value Ratio 2.93%

Net Inflows/Outflows for Each ETF
🟩 ETHA +$143.8M
🟩 FETH +$25.99M
🟩 ETHV +$4.94M
🟩 ETH… pic.twitter.com/mNNV3geM8g

— SoSoValue Research (@SoSoValue) December 23, 2024

The latest ETF trend is a subtle sign that institutional and individual investors are probably losing interest in the token. However, this remains unproven because consistent outflows have only occurred twice. This week’s ETF trend would shed more light on investors’ attitudes towards Ethereum as a store of value.

Amid the unfavorable outlook, a crypto analyst boasting over 100K X followers has asserted that ETH would skyrocket in early 2025. The expert cited historical trends following the U.S. presidential elections to strengthen his claims. “Historically, the first four months of the year following U.S. elections have always been bullish,” he stated.

#Ethereum Early 2025 will be Bullish 🚀

Historically, the first four months of the year following U.S. elections have always been bullish.

I don’t make the rules. pic.twitter.com/ywR3J9ezb8

— Titan of Crypto (@Washigorira) December 22, 2024