Tron (TRX) founder Justin Sun has broken the silence on allegations of his sales of Ethereum (ETH). In an X post, Sun denied claims that he sold his Ethereum holdings. The denial became necessary following on-chain data that shows significant deposits to HTX over the last month.

Sun refutes liquidation claims

Sun maintains that the allegations that he offloaded his Ethereum holdings were untrue. The rumors started after market watchers noticed significant transfers between wallets associated with Sun and his projects.

This triggered concerns, as such massive sales could negatively impact market sentiment and cause a price decline. Given ETH’s price performance on the broader cryptocurrency market, this has raised fears of a further crash.

In the past seven days, Ethereum’s price has decreased from the $4,000 level it recently reached in the ongoing bull run. ETH plunged to a low of $3,127 in earlier trading, triggering anxieties among investors that it could slip below the $3,000 support level. All these happened as a major sell-off hit the coin.

However, the altcoin has rebounded well and climbed to $3,458 before recording corrections. As of this writing, Ethereum is trading at $3,391.20, a 1.73% increase in the last 24 hours.  

Analysts predict bullish turn for Ethereum

Speaking about the rumors and addressing the fears, the Tron founder clarified that the recent transfers were not liquidations but inter-wallet movements. Sun restated his long-term bullish stance on the Ethereum ecosystem.

Sun’s message has reassured the market and could help calm the nerves of investors and traders alike. Some have attributed the recent price volatility to uncertainty in some quarters of the market.

Meanwhile, experts predict that Ethereum’s price indicates a bottom formation with a strong rally ahead. They cited the ETH/BTC pair as another positive indication of a likely market rally soon.

However, they maintain that for Ethereum to retest the $4,000 price mark, it must breach the $3,540 resistance level. CryptoQuant sees a possible climb of Ethereum to the $5,000 level.