Justin Sun moves to withdraw $209 million in Ethereum from Lido Finance – Will ETH markets tank?

Justin Sun recently withdrew 52,905 ETH from Lido Finance, an amount valued at approximately $209 million. This withdrawal adds to his earlier transactions in Ethereum, and there’s speculation that his activity could potentially impact the ETH market.

According to blockchain analytics firm Spot On Chain, Sun amassed 392,474 ETH across three wallets for an estimated $1.19 billion. At press time, his net profit from these transactions stands 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

The Tron blockchain founder made significant transactions between February and August this year. In October 2023, Sun unpledged 80,251 ETH (worth $131 million at the time) from Lido and transferred it to Binance within four days. 

Following this transaction, Ethereum’s price dropped by 5% mid-month. This recent withdrawal has reignited similar fears, with some analysts anticipating short-term price pressure on Ethereum as markets keep an eye on Sun’s actions.

Ethereum lags behind Bitcoin in 2024 gains

Ethereum has experienced a 71.5% uptick since the beginning of the year. However, it has underperformed compared to Bitcoin’s, which posted an impressive 142% gain over the same period. 

While Ethereum’s performance is commendable, its growth trajectory has not mirrored Bitcoin’s meteoric rise to new highs, leaving some investors questioning whether ETH can even achieve a new all-time high level.

Per Chinese reporter Colin Wu, Ethereum’s total value locked (TVL) increased by $2.22 billion in the past week, slightly trailing Bitcoin’s $3.09 billion increase. Between December 9 and December 13, Ethereum spot exchange-traded funds (ETFs) recorded a net inflow of $855 million, marking a record high for weekly inflows. 

Ethereum spot ETF had a net inflow of $855 million in the last trading day (December 9 to December 13, US Eastern Time), reaching a record high of weekly net inflow. Blackrock ETF ETHA had a weekly net inflow of $523 million, and Fidelity ETF FETH had a weekly net inflow of $259… pic.twitter.com/HOO1pE6nsr— Wu Blockchain (@WuBlockchain) December 16, 2024

Leading the charge in ETH ETF inflows were BlackRock’s ETF ETHA, which saw a net inflow of $523 million, and Fidelity’s ETF FETH, which attracted $259 million during the same period.

Analysts believe that increased ETF inflows could bolster Ethereum’s price stability, even amid short-term market fluctuations.

Technical indicators point to a potential breakout

Meanwhile, ETH’s technical chart patterns are providing reasons for investors to be bullish. According to several analysts on X, ETH charts are showcasing similar patterns to when it last hit an ATH in 2022, with the recent appearance of a “Golden Cross” on Ethereum’s weekly chart, a technical indicator signaling potential upward momentum. 

???? Ethereum Golden Cross!!

The last time $ETH showed a Golden Cross on the weekly was in 2021 right before it surged up 200% in less than 10 weeks

Will we see history repeat? ????

Source: Washigorira pic.twitter.com/pqX1fe9E2Q— CryptosRus (@CryptosR_Us) December 15, 2024

X crypto analyst going by the handle @CryptoRus noted that the last time ETH exhibited this pattern was in early 2021, preceding a remarkable 200% rally within ten weeks.

The EMA50 trend line, which has been reinforcing Ethereum’s price from below, further supports the optimistic outlook. 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.

Long-term price projections for Ethereum

Ethereum’s long-term potential continues to attract speculative forecasts. Bybit and Block Scholes, for instance, have projected a price goal of $8,800 by the first quarter of 2025. These predictions are supported by ETH’s solid performance in the derivatives market and its rising triangle chart formation, which suggests sustained upward momentum.

Even more optimistic is the forecast from Titan of Crypto, who told FX Business that ETH could climb above $5,000 by 2025. These projections largely hinge on historical technical patterns and the increasing institutional adoption of Ethereum.

At press time, ETH is changing hands at $3,966, up by 3.22% in the last 24 hours, per CoinMarketCap data.  

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