TRON (TRX) founder and crypto entrepreneur, Justin Sun, requested a withdrawal of 80,251 Ethereum (ETH) on Wednesday (4/10/2023), as shared in a post by Lookonchain today.
This has ETH holders on edge as they now wonder if Sun is getting ready to sell its tokens, which could trigger a sharp price drop.
● Justin Sun Ready to Sell ETH?
So far, Justin Sun has managed to withdraw around 43,000 ETH tokens and deposit them to Binance. The value of the ETH withdrawn was around US$70 million, according to the blockchain tracking platform, quoted from Coinedition.
Meanwhile, ETH is trying to gain ground above the US$1,645 threshold.
This happened after the ETH price fell below a significant price point on Wednesday (4/10/2023). Since then, the price of this leading altcoin managed to get back above the 20-day EMA line, where it currently continues to trade.
Of course, this condition will get worse if Justin Sun suddenly sells all his ETH assets when the asset withdrawal process has been completed.
If the cryptocurrency manages to close a daily candlestick above this resistance level in the next 48 hours, it may continue to rise to the next resistance level at US$1,755 in the following week if buying pressure continues.
In a very bullish scenario, traders could even push ETH up to US$1,880 in the coming weeks.
On the other hand, if ETH is rejected by the previously mentioned US$1,645 level, it could cause ETH to fall below the 20-day EMA line, located at US$1,639.54.
Following this, this altcoin may be at risk of falling further in the next few days. If this bearish theory is confirmed, ETH could fall to around US$1,555.
However, investors like Justin Sun as well as other traders should note that a significant bullish technical flag is close to being triggered.
Currently, the daily RSI line is trying to cross the daily SMA RSI line. This indicates that buyers are building strength against sellers.
Therefore, a bullish scenario may be more likely in the short term, which could cause the ETH price to rise to the US$1,755 resistance level.
Potential confirmation of this bullish theory could occur when the daily RSI line finally crosses the daily SMA RSI line, followed by the daily candlestick closing above US$1,645. However, this situation may change if Justin Sun will sell all his ETH assets after successfully making the withdrawal.