According to reports, a new Ethereum (ETH) whale has been on the rise lately. The whale purchased $405 million worth of ETH since March 31 and is suspected to be Tron founder Justin Sun. Sun is also linked to another address that has made large ETH movements this year.
Is Justin Sun the new whale on the horizon?
Blockchain research platform Lookonchain revealed that a whale has sparked an Ethereum buying frenzy over the past few weeks. Newly created accounts began purchasing ETH on cryptocurrency exchanges on March 31st.
According to the post, the mysterious wallet first withdrew $96.8 million worth of stablecoins from cryptocurrency exchange Binance. Then whales began purchasing Ethereum from Binance and decentralized exchanges (DEXs).
did #justin sun 127,388 purchases $ETH($405.19M) After April 8?
suspicious wallet #justin sun Deposited $787 million $USDT to #Binance In ~ #tron From March 31st.
Additionally, a mysterious wallet was created on March 31st. #Ethereum withdrew $96.8 million worth of stablecoins. #Binance.
this is… pic.twitter.com/OcEovodUrc— Lookonchain (@lookonchain) April 22, 2024
From April 8 to April 20, the address purchased 127,388 ETH, worth approximately $405.19 million, at an average price of $3,172 per token. According to the research platform, the activity of this new address is similar to that of Justin Sun’s alleged address.
Although the possibility of coincidence is not ruled out, the activities of the two people mentioned do not appear to be such. On March 31, an address suspected to belong to Sun deposited a significant amount of USDT on Tron, amounting to 787 million USDT, coinciding with withdrawals from a mysterious new address.
As NewsBTC reported, Justin Sun’s wallet also made similar purchases between February 12 and February 24. At that time, the address acquired 168,396 ETH, worth approximately $580.5 million, at an average price of $2,894.
Lookonchain believes the similarities suggest these addresses likely belong to Sun. So, Justin Sun bought 295,757 ETH worth $891 million in the last two months.
Ethereum price recovers amid whale accumulation
X users expressed concern about Sun’s move. When first reported, some thought the transaction was suspicious.
One user declared that Sun would be “the cause of the next market crash.” Others believe the time has come. question Whether Sun will dump his ETH bag. However, the possibility of accumulating for the approval of an Ethereum spot exchange-traded fund (ETF) was raised.
Recent news about Sun’s alleged overbuying has received a more positive response. Users viewed this as a bullish signal for the second-largest cryptocurrency as the token could benefit from whale accumulation.
On Friday, the price of Ethereum fell to $2,865, a level not seen since late February. However, over the weekend, ETH began to recover from its recent decline as whale buying continued.
Afterwards, the ‘king of altcoins’ recovered the $3,100 support line and is currently trading at $3,192. The recovery represents a 2% increase from prices 24 hours ago and a 1.5% surge over the weekly period.
Additionally, ETH’s daily trading activity increased by 8.7%, reaching $11.42 billion in daily trading volume. Likewise, the second-largest cryptocurrency saw its market capitalization increase by 1.78% over the past day.
Ethereum's price performance in the 7-day chart. Source: ETHUSDT on TradingView
Featured image from Unsplash.com, chart from TradingView.com
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