Ethereum is facing bearish momentum, with a 17% price drop since hitting $4,000. This week, Tron founder Justin Sun sold $143 million worth of ETH, about half of his holdings. His actions have raised questions, as they seem to be impacting Ethereum’s price significantly.
Justin Sun’s Selling Spree
Since November 10, Sun has deposited 108,919 ETH (worth $400 million) into HTX, mostly at prices near $3,674 per ETH. He has also unstaked 42,904 ETH (valued at $139 million) from Lido Finance, sparking speculation he may move these funds to HTX. This high activity aligns with Ethereum’s ongoing struggles in the market.
Ethereum’s Market Performance
Ethereum is currently trading at $3,304, reflecting a 17% decline from its recent high and a 2.19% drop in the last 24 hours. Trading volume is down 8.57%, and bearish sentiment dominates. Futures data reveals 54% of trades are short positions, with a long-short ratio of 0.8495.
Despite the downturn, 78% of ETH holders are still in profit. Technical analysis highlights critical support at $3,260. A drop below this level could push prices to $3,000, where the 200-day moving average might offer stability. Indicators like RSI (39.28) and ADX suggest bearish momentum, with RSI nearing oversold territory.
What’s Next for Ethereum?
The key question is whether Ethereum can hold above $3,260. If not, a further drop to $2,800 is possible, especially if large-scale selling continues. While some analysts see Ethereum in a “safe zone,” others warn of increased volatility due to low weekend trading volumes and broader market uncertainty.
For now, investors remain cautious, closely watching Justin Sun’s moves and their ripple effects on Ethereum’s price.
