9,018 ETH in 19 Hours, But What’s Behind It?

Institutional interest in Ethereum (ETH), the second cryptocurrency by market cap, may be heating up again, according to a recent tweet by on-chain analytics platform Spot On Chain.

Five wallets suspected of belonging to the same entity made significant movements within 19 hours, depositing $29.2 million in USDT to HTX (previously Huobi) and withdrawing 9,018 ETH at an average price of nearly $3,237.50 during the recent market drop.

What makes this transaction even more intriguing is its timing and strategy. The USDT involved in this massive purchase had been idle for nearly two months. According to Spot On Chain, these wallets withdrew the USDT from HTX on Nov. 20, 2024, only to deploy them now for an Ethereum accumulation spree.

Fingers are pointing at Justin Sun, the founder of TRON and a well-known figure in the crypto world. Sun’s commitment to reforming the Ethereum Foundation and his vocal ambition to see ETH reach $10,000 have sparked speculation about his potential involvement. However, this remains unknown as of press time.

ETH price action

Ethereum’s rebound from Jan. 23 continued into today’s session, reaching an intraday high of $3,428. ETH is up 5.49% in the last 24 hours to $3,398. ETH’s recent gain reflects the bullish sentiment on the market, which has seen crypto prices bounce across the board.

This performance follows the issuance of a crypto-related executive order, which establishes a working group to propose new digital asset regulations and explore the creation of a national “digital asset stockpile.”

On the upside, a break and close above the 50-day SMA would indicate that buyers have returned to the market, causing ETH to exit its current range. ETH may reach $3,745, which is a key level to monitor. The RSI is just above the midpoint, indicating a slight advantage for bulls.

On the downside, the daily SMA 200 at $2,984 remains a key support to watch. If Ethereum breaks below this key level, the ETH price could fall to $2,850.