TL;DR
- Justin Sun transferred an additional 29,153 ETH to HTX, totaling 227,000 ETH worth $807 million since November.
- Ethereum dropped 2%, settling at $3,348, while liquidations reached $38.3 million in the last 24 hours.
- Ethereum ETFs saw a net outflow of $55.41 million, with the Grayscale Ethereum Trust ETF losing $17.36 million.
The Ethereum market is facing a new shake-up due to actions by Tron founder Justin Sun, who transferred 29,153 ETH, equivalent to $96.7 million, to the HTX exchange. This is just one of several transactions he has executed this year. Since November, Sun has deposited a total of 227,000 ETH, valued at approximately $807 million, acquired at an average cost of $3,036 per ETH.
Ethereum’s price quickly reacted, dropping by 2% to $3,348. This decline was accompanied by significant liquidations in the derivatives market, amounting to $38.3 million in the last 24 hours, with $27.52 million coming from long positions. ETH’s inability to surpass the critical resistance level of $3,500 is causing uncertainty among investors, with the next support level now estimated at $3,000.
The Impact on ETFs and Sun’s Plan
In addition, Justin Sun initiated the unstaking of 96,580 ETH ($322.7 million) from platforms like EtherFi and Lido Finance. Analysts speculate that these assets might be used to bolster his deposits on HTX. While Sun’s actions spark debate, he claims they are merely routine wallet movements.
On the other hand, Ethereum ETFs experienced their first net outflow in four days, totaling $55.41 million. The Grayscale Ethereum Trust ETF recorded a daily loss of $17.36 million, bringing its historical cumulative net outflow to $3.634 billion. Despite this setback, alternative ETFs exceeded $400 billion in net assets as of November, showing an impressive year-over-year growth rate of 93%. However, financial advisors’ allocation to these remains low, at just 3.6% in 2024, though an increase is expected in the coming years.
The future of Ethereum might see a recovery in 2025, with analysts projecting a price as high as $7,080, provided market conditions support a rebound.
