Justin Sun, the founder of Tron, has addressed rumors about him selling large amounts of Ethereum (ETH) after the noticeable activity involving his wallets.
Blockchain data showed significant ETH deposits into HTX from Justin Sun’s wallet, along with redemptions from Lido Finance and EtherFi, sparking selloff rumors. However, the Tron founder has denied these claims, saying that it was simply wallet movement, not a liquidation.
He reiterated his confidence in Ethereum’s long-term potential, stating, “The rumors circulating online about us liquidating ETH are false. This is simply a transfer of ETH between our different wallets. We remain long-term bullish on the Ethereum ecosystem.”
Since November 10, Sun has deposited 108,919 ETH, worth approximately $400 million, into HTX, with an average price of $3,674 per ETH. Many of these transactions occurred near local price peaks, drawing further attention.
Ethereum’s price has bounced back, climbing 2% to over $3,400. Analysts are optimistic, comparing the current market setup to 2020’s bullish patterns. Some believe ETH is forming an “Adam & Eve Double Bottom” pattern, a bullish indicator signaling potential for a strong reversal and rally toward $4,000 or even $4,800.
For Ethereum to reach a $4,000 rally, it must first break through the resistance at $3,542 to confirm the start of a potential Christmas rally to $5K. With concerns about Justin Sun’s selloff cleared, the market sentiment could turn bullish again.
Crypto analyst Ali Martinez pointed out that Ethereum’s critical support is between $3,030 and $3,130, while the key resistance lies between $3,640 and $3,740. Martinez suggests that a sustained move outside this range could determine Ethereum’s next price direction.
The market sentiment has improved following Sun’s clarification, reducing fears of a selloff. With these concerns behind, analysts believe Ethereum could be poised for a strong rally, possibly reaching $5,000 in the coming months.
Also Read: Justin Sun Moves $119M ETH as Price Hits $4K
