The founder of TRON (TRX) and cryptocurrency entrepreneur, Justin Sun, applied to withdraw 80,251 Ethereum (ETH) tokens on Wednesday, according to a post shared by Lookonchain earlier today. This is making ETH holders jumpy as they are now questioning whether Sun is getting ready to dump his tokens, which could trigger a steep price drop.
So far, the entrepreneur has already successfully withdrawn about 43K ETH tokens and deposited them to Binance. The withdrawn ETH is worth about $70 million, according to the blockchain tracking platform.
Justin Sun(@justinsuntron) applied to withdraw 80,251 $ETH ($132M) on Oct 4.
So far, he has successfully withdrawn 43K $ETH ($70M) and deposited it to #Binacne.https://t.co/6wvQuDabVE pic.twitter.com/asPLdKNqN4
— Lookonchain (@lookonchain) October 7, 2023
Meanwhile, ETH was attempting to reclaim a position above the $1,645 threshold. This was after it had broken below the significant price point on 4 October 2023. Since then, the leading altcoin’s price has been able to break back above the 20-day EMA line, where it continued to trade at press time.
Daily chart for ETH/USDT (Source: TradingView)
Should the cryptocurrency close a daily candle above this resistance level within the next 48 hours, then it may continue to rise to the subsequent barrier at $1,755 in the following week if the buying pressure persists. In an extremely bullish scenario, traders could even boost ETH to as high as $1,880 within the next couple of weeks.
On the other hand, ETH getting rejected by the aforementioned $1,645 mark could lead to ETH dropping below the 20-day EMA line, which was situated at $1,639.54. Thereafter, the altcoin may be at risk of dropping further through the course of the following few days. If this bearish thesis is validated, ETH could plummet to as low as $1,555.
Investors and traders will, however, want to take note of the fact that a significant bullish technical flag was on the cusp of being triggered. At press time, the daily RSI line was attempting to cross above the daily RSI SMA line. This suggests that buyers are in the process of building up strength against sellers.
Subsequently, a bullish scenario may be more likely to play out in the short term, which could lead to ETH’s price rising to the $1,755 resistance level. A potential confirmation of this bullish thesis could be when the daily RSI line finally crosses above the daily RSI SMA line followed by ETH closing a daily candle above $1,645.
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