Justin Sun, the founder of Tron (TRX), has responded to allegations regarding his transactions of Ethereum (ETH). Sun refuted allegations that he had liquidated his Ethereum investments in an X post.
Sun contends that the allegations that he divested his Ethereum holdings were unfounded. Following the observation of substantial transfers between wallets associated with Sun and his initiatives by market observers, the rumours began.
This raised concerns, as there was the potential for a price decline and a negative impact on market sentiment following such substantial sales. This has prompted concerns regarding the potential for a further crypto market collapse, given the price performance of ETH in the broader market.
Ethereum’s price has declined from the $4,000 level it recently attained during the ongoing bull run over the past seven days. In the previous trading session, ETH experienced a significant decline, reaching a low of $3,127. This led to concerns among investors that it could potentially fall below the $3,000 support level. As the coin experienced a significant sell-off, all of these events transpired.
Nevertheless, the altcoin has made a strong recovery and has risen to $3,458 before documenting corrections. Ethereum is currently trading at $3,391.20, representing a 1.73% increase in the past 24 hours.
The Tron founder clarified that the recent transfers were not liquidations but rather inter-wallet movements in response to the rumours and concerns. Sun reiterated his long-term favourable outlook on the Ethereum ecosystem.
The message from Sun has assured the market and has the potential to alleviate the anxiety of both investors and speculators. There are those who have linked the recent price volatility to the uncertainty in certain sectors of the market.
Experts anticipate that Ethereum’s price will experience a robust rally in the near future, as it will be in a bottom formation. They identified the ETH/BTC pair as an additional positive indicator of an imminent market rally.
Nevertheless, they insist that Ethereum must surpass the $3,540 resistance level in order to retest the $4,000 price point. CryptoQuant anticipates that Ethereum may ascend to $5,000.
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