A crypto wallet associated with Justin Sun, the co-founder of Tron, a smart contract platform, has moved 20,000 Ethereum (ETH) worth approximately $32.4 million from Lido Finance, a liquidity deployment platform. The money was transferred to Binance, the world’s largest crypto exchange in terms of trading volume and number of customers.
The transaction, executed in one batch, was captured by The Data Nerd, an analytics platform, and shared on X on October 5. As it stands, Ethereum (ETH) is under pressure looking at its performance on the daily chart.
Ethereum drops 4%, are the bears flowing back?
Trackers show the coin is down about 4% in three days, confirming the October 2 sellers. Notably, the daily chart has a double bar formation with the October 2nd bear candlestick, completely reversing the October 1st buyers.
This arrangement suggests that bears could be in control, especially given the decline in recent trading days and the level of participation on October 2, when the coin slid.
In technical analysis, losses due to increasing volumes often indicate high participation. If prices rise, the currency in question may rise. Conversely, a sell-off could worsen if the bar had high trading volumes.
It is also unclear whether Justin Sun plans to sell ETH after transferring coins to exchanges. Crypto transfers to centralized exchanges, which support many stablecoins like USDT and others, are often associated with sell-offs.
Market participants may interpret such moves as bearish, fueling the sell-off and subsequently putting further pressure on prices. ETH is now at a one-week low.
Justin Sun pushes ETH into 2023
The Data Nerd notes that prices fell the last time the wallet moved ETH to Huobi, which has since been rebranded as HTX. In August, the wallet moved 5,000 ETH to HTX. The deposit came a week before ETH prices fell 12%.
Bitcoin and Ethereum prices fell sharply in mid-August, causing a “cascade liquidation” that spooked investors. ETH bulls have since failed to reverse these losses. Given the relatively low trading volumes over the past two months, prices are still within the trading range of August 17, which is a bearish signal.
Justin Sun appeared at the end of February 2023 deployed 150,000 ETH, worth approximately $240 million, to Lido Finance. The transfer remains the largest single-stay transaction, forcing the liquidity strike provider to do so activate the Staking Rate Limit feature, which limits the number of coins one can stake to 150,000 ETH.
Lido Finance said the feature is more of a “safety valve” that “addresses potential side effects, such as reward dilution, without having to explicitly pause deposits.”
Feature image from Canva, chart from TradingView