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Ethereum transfer has made significant waves in the crypto market, causing a noticeable 2% drop in ETH prices. The Tron founder has moved an impressive 29,153 ETH, marking one of several large transactions this year. Since November, Sun has transferred a total of 227,000 ETH, valued at approximately $807 million, greatly impacting market dynamics.
Ethereum Price Response
Data from Spot on Chain reveals that Justin Sun has recently deposited 29,153 ETH, worth around $96.7 million, into the crypto exchange HTX. This transfer, part of a series of substantial deposits throughout the year, has had a significant effect on Ethereum’s price.
From November 10 onwards, Sun has transferred a total of 227,000 ETH to HTX, with an average price of $3,556 per ETH. He acquired most of these holdings in 2024 at an average cost of $3,036 per ETH. Additionally, Sun has unstaked 96,580 ETH, valued at $322.7 million, from platforms like EtherFi and Lido Finance. Analysts believe these assets may be used for further deposits to HTX, indicating Sun’s ongoing liquidity management efforts.
Despite Sun’s explanation that these transfers are routine, they have coincided with a decrease in ETH prices. As of now, Ethereum is trading 1.88% lower at $3,348, with a market cap of $404 billion. The 24-hour liquidations have risen to $38.3 million, with $27.52 million in long liquidations.
The broader crypto market, including Ethereum, has experienced selling pressure as the year draws to a close. Investors have struggled to push ETH above the critical resistance level of $3,500, resulting in a decline below $3,300. This downtrend is expected to persist until the next support level at $3,200. Some analysts, like Rover, predict a significant Ethereum rally in the first quarter of 2025, starting on January 1. This rally is expected to coincide with Bitcoin’s peak dominance, based on historical trends.
Conversely, popular analyst Charting Guy anticipates that ETH prices could surge to $7,080 by April 2025, in response to Sun’s actions. Binance also forecasts that the $4,000 mark will not be reached immediately after Trump’s inauguration.
Ethereum ETFs See Net Outflows
In a related development, Ethereum spot ETFs experienced a net outflow of $55.41 million yesterday. This marks the first net outflow after four consecutive days of net inflows. Notably, the Grayscale Ethereum Trust ETF saw a single-day net outflow of $17.36 million, contributing to a historical cumulative net outflow of $3.634 billion.
On the other hand, the Grayscale Ethereum Mini Trust ETF experienced a single-day net outflow of $13.75 million, despite its historical cumulative net inflow remaining at $591 million. Currently, the total net asset value of Ethereum spot ETFs stands at $12.275 billion, representing 3% of Ethereum’s total market cap. The historical cumulative net inflow is $2.621 billion.
Alternative ETFs achieved a significant milestone in November by surpassing $400 billion in net assets. They also recorded the highest year-over-year asset growth rate of all asset classes, at 93%. Digital assets, trading-leveraged equity, and derivative income ETFs account for the majority of the total alternative ETF market share, approximately $325 billion or 80%.
Despite this growth, financial advisors reported a mere 3.6% allocation to alternatives in 2024. However, this figure is expected to rise. The firm discovered that 14.4% of existing alternative allocations are implemented through the use of ETFs.
As the market closely monitors Justin Sun’s next moves, the impact on Ethereum’s price and the broader crypto market remains a key area of interest. These developments underscore the volatility of the crypto market and the significant influence that major players like Sun can wield.
