The recent actions of Justin Sun, the founder of Tron (TRX), have raised concerns about the stability of the Ethereum price. Sun recently unstaked a significant amount of Ethereum from Lido Finance, a decentralized staking platform, totaling $209 million. This move has sparked fears of more sell-offs, potentially causing a crash in the Ethereum price.
According to reports from Spot On Chain, Sun withdrew 52,905 ETH tokens worth $209 million from Lido Finance, part of the 392,474 ETH tokens he accumulated between February and August 2024. Sun purchased these tokens at an average price of $3,027, with a current profit of $349 million, representing a 29% increase from the purchasing price.
In a previous instance, Sun unstaked 80,251 ETH tokens worth over $131 million from Lido Finance and transferred them to Binance, just before a sharp 5% drop in the Ethereum price in mid-October. This move indicates Sun’s tendency to cash in on his Ethereum holdings during market rallies.
Further transactions revealed that Sun deposited 19,000 ETH worth $60.83 million and transferred 29,920 ETH valued at $119.7 million to HTX, a crypto exchange, after the price of Ethereum surpassed $4,000 in the past week. These actions, combined with Sun’s history of large-scale asset movements, raise concerns about the Ethereum market’s stability.
The market is watching closely to see if Sun will continue his Ethereum dumping spree, as further sell-offs could have a significant impact on Ethereum’s price. Large ETH liquidations in the past have triggered price crashes due to increasing selling pressures, and investors are wary of a potential downturn in the market.
Despite the uncertainty surrounding Sun’s actions, the price of Ethereum has shown resilience, recording a more than 7% increase in the last seven days and a 28% surge over the past month, according to CoinMarketCap. However, the market remains volatile, and any further large-scale ETH dumps could exacerbate this volatility, potentially leading to a price crash in the future.
In conclusion, the Ethereum price faces potential turbulence as a result of Justin Sun’s recent actions. While the market remains uncertain, investors are advised to stay vigilant and monitor developments closely to make informed decisions about their investments in Ethereum.