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Justin Sun’s big Ethereum bet: Whales eyeing ETH ETF gains?

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  • TRON founder Justin Sun purchased 1,614 ETH as the approval of Ethereum ETF nears.
  • Ethereum’s price action was looking bullish and it may hit the $3,300 level.

The cryptocurrency market is turning neutral and seems to be recovering after a major decline. Despite the attempt at recovery, the market sentiment remains bearish.

However, few investors are looking forward to the approval of the spot Ethereum [ETH] ETFs (Exchange-Traded Fund) as they started ETH accumulation.

Justin Sun buys $5 million worth of ETH

On 11th July, an on-chain analytic firm spotonchain made a post on X (previously Twitter) stating that TRON founder Justin Sun purchased 1,614 ETH worth $5 million.

The average buying price of this massive ETH was somewhere around $3,097.

Besides this recent ETH purchase, he has also deposited a notable $45 million USDT to Binance which signals a likely future ETH purchase.

Since February 2024, Sun has been continuously accumulating ETH. According to the data, he has purchased nearly 362,751 ETH worth $1.11 Billion at an average price of $3,047 through three wallets. 

On the other hand, another whale named Golem appears to have stopped dumping ETH.

Additionally, Golem has staked a significant 40,000 ETH worth $124.6 million, according to Lookonchain. This recent activity by Justin Sun and Golem, signals potential upcoming bullish momentum across the market.

Ethereum technical analysis and key levels

According to expert technical analysis, ETH is looking bullish as it gave a neckline breakout of a bullish double-bottom price action pattern in a 4-hour time frame.

On 11th July, 2024, if the ETH 4-hour candle gives a closing above the $3,135 level then there is a high possibility that ETH could reach the $3,300 level.

Ethereum breakout

Source: TradingVIew

Additionally, on a daily time frame, ETH has moved above the 200 Exponential Moving Average (EMA). A price above 200 EMA indicates that the asset is in a bull cycle on a higher time frame.

Furthermore, the Relative Strength Index (RSI) a technical indicator also indicates a bullish reversal.

However, this bullishness will continue once the SEC approves Ether ETF. Recently, Bloomberg ETF expert Eric Balchunas has predicted that there is a high possibility that the SEC may green light spot Ether ETF by 18th July, 2024.

In a post on X, he stated that, 

“We don’t have a new over/under launch date yet because we haven’t heard what the SEC’s game plan is. Hope to hear soon. But if you forced me gun to head style to give my best guess for date I’d go with July 18th.”

Despite the bullish outlook for ETH, in the last 24 hours, the open interest (OI) has been negative (-0.53%) which suggests lower interest from investors and traders in this current fearful market.

Liquidation and price-performance analysis

Data from CoinGlass for the last seven days also signals that bulls are back to supporting Ethereum. If ETH reaches $3,300, approximately $1.18 billion worth of short positions could be liquidated.

Ethereum Liquidation level

Source: CoinGlass

Read Ethereum’s [ETH] Price Prediction 2024-2025

Meanwhile, if ETH fails to sustain the current breakout and falls back to the $2,900 level, approximately $1.46 billion worth of long positions could be liquidated. 

At the time of writing, ETH was trading near $3,115 and it experienced a 0.5% upside in the last 24 hours.



Chanakya G is an analyst with 4 years of experience looking at the crypto-markets. His primary field of interest is the Altcoin market and its correlation with Bitcoin, and how that dynamic affects the larger sector.
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