Justin Sun Dumping ETH for HTX: Ethereum Price Rally Coming?

Justin Sun over the past week has been on the realm light. He redeemed 39,999 ETH, around $143 million from staking services Lido Finance and Etherfi. Sun, then moved it all to HTX, which is part of a little known token. Can this affect Ethereum price, and how?

It’s particularly interesting as the market over the same period has seen a substantial shift of funds from Ethereum to HTX. Despite a large influx of Ethereum into HTX, the network has surprisingly seen a slight decrease. It is down by 1% over the past 24 hours.

On the other hand, Ethereum price has experienced an increase of 2% in the same period. The resulting performance pattern contrasts so much that it raises questions about drivers and consequences of such a large piece of Sun’s assets transfer.

HTX Technical Analysis and Market Reaction

In an in depth analysis we can see that the HTX price is trending downwards. It is indicated via the blue descending trendline that lines the lower highs throughout that period of time.

The price struggles to move higher here however this trendline shows us resistance. After a larger downward movement the candlestick pattern shows an alternating green and red candles which defines a fluctuations within a relatively narrow price range.

A support level could be found around 0.000020 USDT, which is a recent low point on the chart. At this line of the downward trend, we can infer a resistance level around 0.00002150 USDT. It’ll be in line with price rejections recently.

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However, on the other hand the Money Flow Index (MFI) is approximately 88.88. It’s unusually high and normally indicative of overbought conditions. An MFI of greater than 80 might indicate that we are receiving a reversal or pullback near term. This asset might be overvalued near term.

With the downward trend and an extremely high MFI value, a bearish bias can be perceived in the short term. Price can’t break above the trendline with heavy volume. Investors may pay attention for either the resistance to continue at its current trendline or look for a breakout with sizeable volume to hit the bearish sentiment.

What’s Next for HTX and Ethereum price?

As ethereum price continues to respect the descending trendline as a resistance, one can take a short position close to a trendline with a stop above it, aiming for lower supports. A bullish scenario would be a break above the trendline which might lead to the subsequent resistance levels. An Ethereum price breakout like this should be accompanied by high volume to validate.

Taking Justin Sun’s actions is not isolated, as it’s what has been happening since November 10. This is similar to the amount of 108,919 ETH, approximately 400 million dollars, which Sun has strategically transferred into HTX over this period while reflecting these transfers in connection with peaks in Ethereum price.

This reflects a planned exploitation of the HTX price movements and indeed stabilization that could happen via massive injections of capital. Additionally, as Sun holds an additional 42,904 ETH in staked form to Lido, more liquidity is likely to soon wash into the HTX market.