Ethereum (ETH) faces potential market volatility after Tron (TRON) founder Justin Sun announced his intention to withdraw 52,905 ETH, valued at around $209 million, from Lido Finance (LDO).
Sun’s decision comes on the heels of a recent sell-off when Ethereum hit the $4,000 mark, raising questions about his intentions.
Withdrawal raises concerns over market impact
Justin Sun’s decision to withdraw 52,905 ETH from Lido Finance has sparked concern among market participants about potential volatility and its implications for Ethereum’s price stability.
Notably, the move comes shortly after Sun sold another 29,920 ETH, valued at $119.7 million when Ethereum reached $4,000.
The sell-offs from such an influential crypto figure have led to speculation regarding whether the new acquisition indicates bullish sentiment or profit-taking amid short-term market pressure.
Spot On Chain analytics reveals that Sun holds 392,474 ETH, accumulated between February and August at an estimated cost of $1.19 billion, with current holdings valued at $349 million, reflecting a 29% return on investment.
Justin Sun (@justinsuntron) applied to withdraw 52,905 $ETH (now $209M) from #LidoFinance an hour ago.
This is part of the net 392,474 $ETH he allegedly bought at ~$3,027 ($1.19B) via 3 wallets from Feb-Aug, now having an est. total profit of $349M (+29%).
Note that on Oct 4,…
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Ethereum price resilience despite uncertainty
While Sun’s withdrawal timing raises questions about how these transactions could influence the market, Ethereum continues to show resilience in the market.
At press time, Ethereum price was up 2% over the last 24 hours, trading at $3,961 with a daily high of $4,020.
Technical indicators, including a “Golden Cross” on Ethereum’s weekly chart, suggest a potential rally.
🚨 Ethereum Golden Cross!!
The last time $ETH showed a Golden Cross on the weekly was in 2021 right before it surged up 200% in less than 10 weeks
Will we see history repeat? 👀
Source: Washigorira
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Interestingly, as Sun moves to withdraw ETH, Analyst Ali Martinez notes that Ethereum whales have been buying ETH in droves, especially after it broke the $3,300 mark, which further supports the bullish outlook.
#Ethereum whales have been accumulating more and more ever since $ETH broke $3,330!
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Notably, there has also been increased activity on Ethereum’s spot markets, evidenced by an 11% rise in trading volumes to $30.5 billion. This increased activity suggests sustained investor interest.
Key metrics, including a 5% rise in ETH Futures Open Interest, point to growing speculation and confidence in the market.
Although for now, market participants will closely monitor Sun’s next steps, as his significant transactions have historically had an impact on Ethereum’s price dynamics, Ethereum’s long-term outlook remains positive, with analysts projecting prices ranging from $8,800 to $15,000 by 2025.
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