Ethereum [ETH] resists the downside despite Sun’s >$15M transfer
- Tron founder Justin Sun transferred $15.5 million ETH out of his wallet to Poloniex.
- Despite the exchange inflow, ETH was able to resist sell pressure.
On 25 January, Justin Sun transferred 10,000 worth of Ethereum [ETH] to his Poloniex account, Lookonchain disclosed. Such large transfers were usually with the intention to sell and probably push the asset price down. Still, the Etherscan information showed that the Tron [TRX] founder had $347 million worth of the altcoin.
Justin Sun transferred 10,000 $ETH($15.5M) to #Poloniex 2 hrs ago.
And Justin Sun still holds 223,780 $ETH($347M) in address "0x176f".https://t.co/VTN13dGJ1q pic.twitter.com/Rj2sMpksXo
— Lookonchain (@lookonchain) January 25, 2023
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The altcoin’s strength
Interestingly, ETH was able to resist the selling pressure. At press time, CoinMarketCap data showed that the altcoin registered a 3.47% uptick in the last 24 hours.
Furthermore, Glassnode data revealed that the Ethereum investor capitalization was 131.22 billion. The metric measures the difference between the realized cap and thermocap.
It also serves as an indicator to evaluate bottoms in bear markets. The information from the on-chain platform showed that the capitalization has steadied around the same region since November.
Despite Sun’s large inflow, Ethereum’s exchange inflow was not a notable exception. At the time of writing, the exchange inflow was 7300. This condition inferred that Sun only formed a part of those who transferred into exchanges, as others were minimal.
Hence, there might be a cause for increased selling pressure to send the ETH price down.
The exchange outflow was, however, lower at 5211. This implied that not many investors had recently increased their ETH long-term holdings.
Slow volume and a circulation dip
However, the uptick recovered by ETH was not followed by a significant volume spike. The volume shows the data spanning the aggregate amount of tokens involved in transactions within an interval. At press time, the volume increased by 11% to $10.25 billion.
Although the volume increased, it was a different scenario with the circulation. The circulation shows the number of unique tokens used during a period. For the one-day circulation, Santiment showed that it was down 263,000. This means that the increase in ETH value was not enough reason to improve unique user input.
How many are 1,10,100 ETHs worth today?
Prior to the time of writing, Ethereum validators ready for the Shanghai upgrade hit 500,000. However, the number seemed to have slowed down especially since it required 32 ETH to deposit into the Beacon chain.
At press time CryptoQuant data showed that there have been only 49 new depositors. With the event billed for March, investors would expect a positive outcome from it.