Justin Sun, the founder of TRON (TRX) and a notable figure in the world of cryptocurrency, has submitted a request to withdraw a substantial amount of 80,251 Ethereum (ETH) tokens. This development, reported by Lookonchain, has sent ripples through the ETH community, raising concerns about the possibility of Sun offloading his tokens, potentially causing a significant drop in ETH’s market price.
To date, Sun has successfully withdrawn around 43,000 ETH tokens, transferring them to the Binance exchange. This translates to a substantial value of approximately $70 million, according to data from blockchain tracking platforms.
Meanwhile, the Ethereum market has been striving to regain its position above the critical $1,645 threshold. This effort follows a recent dip below this crucial level on October 4, 2023. However, as of the current moment, Ethereum’s value has managed to recover and trade above the 20-day Exponential Moving Average (EMA) line.
Should Ethereum succeed in closing a daily candle above this resistance level within the next 48 hours, it could pave the way for further upward movement. In such a scenario, the cryptocurrency might target the next resistance barrier at $1,755 in the upcoming week, assuming that buying pressure continues to support this trend. In a highly optimistic scenario, traders may even drive Ethereum’s price up to $1,880 in the coming weeks.
On the flip side, failure to breach the aforementioned $1,645 threshold could lead to Ethereum’s descent below the 20-day EMA line, currently situated at $1,639.54. Such a development could put Ethereum at risk of further declines over the next few days, with a potential downside target of $1,555.
Notably, investors and traders should keep an eye on a significant bullish technical indicator that is on the verge of triggering. At present, the daily Relative Strength Index (RSI) line is in the process of crossing above the daily RSI Simple Moving Average (SMA) line. This suggests that buyers are gaining strength relative to sellers in the market.
Consequently, a bullish scenario appears more likely in the short term, potentially driving Ethereum’s price toward the $1,755 resistance level. Confirmation of this bullish thesis could occur when the daily RSI line definitively crosses above the daily RSI SMA line, followed by Ethereum closing a daily candle above the critical $1,645 level.