Ethereum (ETH) Price Set to Rally 50% as Justin Sun Buys $5 Million ETH

Ethereum price action points to an imminent rally fueled by market developments and bullish indicators lately. Per reports, Justin Sun, a top figure in the

Justin Sun, a prominent figure in the crypto space, recently made headlines with his substantial Ethereum purchases. According to Spot On Chain, Sun spent approximately 5 million USDT to acquire 1,614 ETH, at a price of around $3,097 per token, just 12 hours before the report.

This transaction is part of a larger series of ETH purchases by Sun, which began on February 8. In total, he might have acquired 362,751 ETH, valued at roughly $1.11 billion, using three different wallets. The average purchase price through these transactions was approximately $3,047 per ETH.

Furthermore, Sun recently deposited 45 million USDT into Binance, which could indicate additional planned Ethereum purchases in the future.

Meanwhile, a Coinpedia chart analysis on TradingView reveals several bullish indicators for Ethereum. The crypto asset recently bounced off the crucial $2,850 support level, which could potentially mark the beginning of a new bull cycle. This reversal also coincides with a failed double top formation on the weekly chart, with a neckline at $2,844.

Interestingly, the neckline aligns with the 50% Fibonacci retracement level, highlighting its significance as a support zone. Adding to this bullish technical setup is the weekly Relative Strength Index (RSI), which is currently below the halfway line. However, a reverse divergence in this indicator hints at a possible upcoming uptrend.

Recent market activity has shown a shift in sentiment favoring the bulls. Short-side liquidations totaled $52 million, indicating weakening bearish control over ETH. This development, combined with the technical indicators, suggests growing momentum for an upward price movement.

Despite the bearish histograms, the Moving Average Convergence Divergence (MACD) indicator shows a negative crossover in its lines. However, this situation often precedes a potential reversal, further supporting the bullish case for Ethereum.

As the second-largest cryptocurrency by market value, Ethereum currently trades at $3,098.71, showing a slight 0.18% increase in the last 24 hours. Its market capitalization now stands at around $370 billion.

Anticipation builds for the listing of an Ethereum ETF, which could serve as a significant catalyst for price appreciation. This development, combined with the current technical setup and market sentiment, supports the potential for a 52% rally in ETH's price.