Ethereum Under Pressure! Justin Sun’s $5.9M Transfer Sparks Selloff Fears

Justin Sun, the renowned entrepreneur and founder of Tron, is once again making headlines with his significant maneuvers involving Ethereum (ETH). According to on-chain analytics provider Spot On Chain, Sun has allegedly moved a large portion of his Ethereum holdings from Lido to Poloniex, a major crypto exchange. This has ignited widespread speculation about a potential Ethereum selloff.

What’s Sun’s endgame? Will this bold move trigger a market shift? Dive deeper to unpack more.

The Big Withdrawal – What’s Happening?

Observers were particularly stunned by the movement of 1,768 ETH, worth approximately $5.9 million, which was unstaked from Lido. Following this, a transfer of 810 ETH, valued at around $2.7 million, to Poloniex fueled further speculation about a selloff. The early July price drop for Ethereum, which saw a 10% decline, has intensified market concerns, contributing to an 8% drop in the global crypto market cap.

How the Downturn Impacted Sun’s Holdings

Spot On Chain’s report highlighted that Sun’s substantial ETH holdings were heavily impacted by the market downturn on July 5. Between February and June 2024, Sun acquired a total of 361,137 ETH through three separate wallets. However, the sharp market decline on July 5 led to a staggering $66 million loss from his previous gains. Despite a rebound following the launch of new ETFs, the fears surrounding a new Ethereum selloff are not without merit.

Negative Ethereum ETF Outflows

Throughout the last week, Ether ETF flows have remained consistently negative. On July 29, Spot Ethereum ETFs recorded outflows of $98.3 million. Grayscale’s Ethereum Trust (ETHE) alone accounted for $210 million in outflows, triggering the outflow streak. Despite these mixed signals, Ethereum’s price has been relatively stable, fluctuating between $3,300 and $3,400. As of July 30, ETH dropped 1.04% to $3,325.16, with a market cap of $401 billion.

Notable inflows were observed in BlackRock, Fidelity, and Bitwise, with figures of $58.2 million, $24.8 million, and $10.4 million, respectively. However, the broader Ethereum market experienced a selloff, with $33.58 million in long liquidations. This potential selloff, coupled with persistently negative ETF outflows, has created a complex market environment for Ethereum investors.

The World is Watching!

Sun’s strategic moves with ETH and the ongoing ETF outflows continue to generate interest and speculation.

Also Check Out: Ethereum Price Today: On-Chain Data Signals Bearish Trends for ETH Price in August

What will be his next big step? The Ethereum market is in flux. What’s your next move?