Ethereum’s price is facing significant pressure after a large deposit of 29,153 ETH, valued at $96.7 million, was made by Tron founder Justin Sun to the cryptocurrency exchange HTX. This deposit, made earlier today, is contributing to a 0.85% dip in Ethereum’s value, pushing the price closer to the critical $3,000 level. Analysts are now forecasting that Ethereum could bottom out around $2,800 before any potential recovery occurs.
The latest data from Spot On Chain highlights that Justin Sun’s Ethereum activity is not a one-off event. Since November 10, Sun has transferred 227,000 ETH to HTX, worth approximately $807 million, with an average acquisition price of $3,036 per ETH. This calculated liquidity management strategy has raised concerns among traders, fueling speculation of a potential sell-off. Despite these concerns, Sun has downplayed the impact of these transfers, labeling them as routine Ethereum wallet activities.
Justin Sun (@justinsuntron) deposited 29,153 $ETH ($96.7M) and 249,868 $EIGEN ($884K) to #HTX 11 hours ago.
— Spot On Chain (@spotonchain) December 31, 2024
Since Nov 10, he has deposited 227K $ETH ($807M) to HTX at ~$3,556. Most of these $ETH were accumulated at ~$3,036 in the first half of 2024.
He has also requested to… https://t.co/7bHisjhMeV pic.twitter.com/gDvumtebrZ
In addition to his deposits, Sun has also withdrawn 96,580 ETH from platforms such as Lido Finance and EtherFi, amounting to around $322.7 million. These assets may also be destined for additional HTX deposits, further illustrating Sun’s proactive liquidity management amid a broader bearish sentiment in the Ethereum market.
Ethereum’s price struggles have been persistent, with bulls failing to breach the $3,500 resistance level. This has opened the door for a potential drop below $3,000, with $2,800 emerging as a key support level. Analysts suggest that this level could serve as the foundation for a potential inverse head-and-shoulders pattern, signaling a possible reversal in Ethereum’s price trajectory.
Bullish Ethereum Outlook for 2025
Despite the current downturn, optimism for Ethereum’s long-term prospects remains strong. Popular analyst Charting Guy predicts a rally to $7,080 by April 2025, driven by historical patterns that often see Ethereum lagging behind Bitcoin in entering price discovery phases. With Bitcoin recently breaking all-time highs, Ethereum could see similar momentum by mid-January 2025.
Also Read: Pro-XRP Lawyer Bill Morgan Predicts XRP & HBAR to Outperform Bitcoin, Ethereum, and Solana in 2025
In this context, the potential for Ethereum to hit new highs remains strong. Historical Fibonacci extension levels, such as those seen during the 2020-2021 bull market, suggest that Ethereum could reach $17,700 in the current cycle. For now, however, the market is keenly focused on whether the $2,800 support level can hold amid Sun’s liquidity maneuvers, offering a critical point for potential investors. With Ethereum priced near $3,400, it presents an enticing opportunity for those betting on a future recovery.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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