TL;DR
- Justin Sun, founder of Tron, withdrew 52,905 ETH (valued at $209 million) from Lido Finance on December 16, 2024, raising concerns about potential market volatility.
- Sun’s withdrawal adds to his earlier transactions, including an unpledged 80,251 ETH from Lido in October 2023, which caused Ethereum’s price to drop by 5%.
- Despite concerns, Ethereum has shown resilience, with a recent “Golden Cross” on the weekly chart indicating potential bullish momentum and significant inflows into Ethereum spot ETFs.
Justin Sun, the founder of the Tron blockchain, has made headlines once again with a significant financial move. On December 16, 2024, Sun withdrew 52,905 ETH, valued at approximately $209 million, from Lido Finance. This transaction has sparked concerns about potential market volatility and its impact on Ethereum’s price stability.
Details of the Transaction
The withdrawal was tracked by blockchain analytics firm Spot On Chain, which revealed that Sun amassed a total of 392,474 ETH across three wallets between February and August 2024. The estimated cost of these acquisitions was around $1.19 billion, with Sun’s current net profit from these transactions standing at $349 million, reflecting a 29% gain.
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,… https://t.co/r5z7l8YSUq pic.twitter.com/GAalq1imjO
— Spot On Chain (@spotonchain) December 16, 2024
This recent withdrawal adds to Sun’s earlier transactions, including an unpledged 80,251 ETH from Lido in October 2023, which he transferred to Binance within four days, causing Ethereum’s price to drop by 5% mid-month.
Market Impact and Speculation
Sun’s latest move has reignited fears of short-term price pressure on Ethereum. Analysts are closely monitoring the situation, speculating that Sun’s actions could lead to increased market volatility.
The timing of this withdrawal is particularly noteworthy, as Ethereum has experienced a 71.5% uptick since the beginning of the year, although it has underperformed compared to Bitcoin’s impressive 142% gain over the same period.
Ethereum’s Performance and Technical Indicators
Despite the concerns, Ethereum has shown resilience in the market. The total value locked (TVL) in Ethereum increased by $2.22 billion in the past week, slightly trailing Bitcoin’s $3.09 billion increase.
Additionally, Ethereum spot exchange-traded funds (ETFs) recorded a net inflow of $855 million between December 9 and December 13, marking a record high for weekly inflows. Leading the charge were BlackRock’s ETF ETHA and Fidelity’s ETF FETH, which saw net inflows of $523 million and $259 million, respectively.
Future Outlook
Technical indicators are pointing towards a possible bullish trend for Ethereum. The recent formation of a “Golden Cross” on the weekly chart serves as a technical signal that could indicate upward movement, giving investors plenty of reasons to feel hopeful.
Analysts believe that breaking through the $3,845 resistance level could pave the way for a move towards $4,000 and beyond. However, a dip below this level might trigger a short-term correction, with potential downside targets around $3,680 before another rally attempt.
