Ethereum Analysis: Whales Accumulate as Justin Sun Unstakes $209M ETH

Ethereum (ETH) has experienced a strong recovery over the past month, rebounding from a low of $2,355 and nearing the $4,000 mark twice. 

However, Ethereum has yet to sustain a move above this level, leading to increased attention from large investors, known as whales, who have been active in the market.

Increased Whale Accumulation Observed

Recent data shows a noticeable increase in whale accumulation as Ethereum’s price attempts to consolidate above $3,330. Crypto analyst Ali Martinez noted that large investors have been acquiring more ETH since the cryptocurrency crossed this price threshold.

Source: X

This uptick in whale activity suggests growing confidence in Ethereum’s long-term prospects. Large holders, who control significant amounts of ETH, often play a key role in price trends. 

Their accumulation is seen as a response to the recent bullish momentum, though it remains unclear whether this will be enough to push the price beyond the $4,000 resistance level.

Justin Sun’s Unstaking Draws Market Attention

Justin Sun, founder of the Tron network and an advisor to the HTX exchange, has applied to unstake a substantial amount of Ethereum. On-chain tracking platform Spotonchain revealed that Sun requested to withdraw 52,905 ETH, worth approximately $209 million at current market prices, through Lido Finance.

This move follows Sun’s earlier transfer of 29,920 ETH, valued at $120 million, to the HTX exchange. 

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

Reports indicate that Sun acquired nearly 392,474 ETH between February and August at an average price of $3,027 per coin. At current prices, this represents a 29% profit on his holdings.

The unstaking request has raised concerns about potential sell-offs, especially given Sun’s previous transactions. Ethereum’s recent climb toward $4,000 has been met with caution, as large-scale movements by whales like Sun could influence short-term market dynamics.

Ethereum’s Current Market Standing

As of press time, Ethereum was trading at $3,936.56, reflecting a 1.79% increase in the past 24 hours and a 1.46% gain over the past week. Its 24-hour trading volume is $31.98 billion, and its market capitalization stands at $474.58 billion, with a circulating supply of 120 million ETH.

Technical analysis shows that Ethereum is nearing overbought territory, with the Relative Strength Index (RSI) at 60.47. The cryptocurrency’s 52-week price range spans from $2,585.4 to $4,022.4, highlighting its recovery after a volatile year. 

Source: TradingView

However, the $4,000 resistance remains a key psychological barrier for traders.

The Ethereum community continues to monitor whale activity closely, particularly after recent sales by the Ethereum Foundation and co-founder Vitalik Buterin. 

Justin Sun’s unstaking request has added another layer of uncertainty, with some traders wary of further large-scale ETH movements.

FAQs:

What is Ethereum’s current price trend?

Ethereum is nearing $4,000 but has struggled to sustain a move above this resistance level.

Why is Justin Sun’s unstaking activity significant?

Sun’s unstaking of $209M ETH has raised concerns about possible sell-offs that could affect the market.

What role do whales play in Ethereum’s price movement?

Whales, or large investors, often influence price trends, with recent data showing increased ETH accumulation.