Justin Sun-Associated Wallet Acquires $38 Million Worth of Ethereum During Market Decline
Following a recent downturn in the cryptocurrency market, major assets like Bitcoin (BTC) and Ethereum (ETH) are showing signs of recovery. This resurgence is fueled by investors seizing the opportunity to buy during the market dip.
On August 5, 2024, reports surfaced from local blockchain media, previously known as X, revealing that a wallet address “0x5ac” associated with Justin Sun, the founder of HTX and Tron, made a significant purchase of 16,236 Ethereum (ETH) valued at $37 million. The wallet, during Asian trading hours, transferred a substantial $38 million USDT from Sun’s cryptocurrency exchange, HTX, to acquire the ETH at an average price of $2,279.
Addressing speculations about his position liquidation, Sun clarified that he rarely partakes in leveraged trading strategies. Data from Spot On Chain indicated that since February 8, 2024, Sun’s address accumulated 377,590 ETH at a cost of $1.15 billion, with an average buying price of $3,051. The same address also moved 210 million USDT to HTX in recent days.
Currently, ETH is trading around the $2,455 mark, having undergone a 13% price drop in the last 24 hours. Despite this decline, its trading volume surged by 305% within the same period, suggesting active participation from traders and investors amid the market correction.
In a separate development, Justin Sun took to X to dismiss rumors of his massive positions being liquidated, emphasizing his infrequent engagement in leveraged trading activities. Technical analysis experts maintain a bullish outlook on ETH, citing consistent support from an upward trendline since June 2022. The recent price dip saw ETH finding support once again from this trendline, sparking expectations of a potential upward price movement.
Investors and traders are hopeful for a significant price rally as historical price trends indicate a positive correlation with support levels. However, should ETH fail to sustain levels above the trendline and close below $2,150, there is a looming risk of substantial downside momentum in the days ahead.
