Justin Sun, the founder of Tron blockchain, has addressed rumors of a potential selloff of Ethereum (ETH).

Speculation arose after significant movements of ETH from Sun's wallets to a cryptocurrency exchange. However, Sun has denied these claims, stating that the transactions were internal wallet transfers and not indicative of a selloff. He expressed confidence in Ethereum's long-term potential and clarified that the movement of ETH was part of an asset management strategy.

Sun transferred approximately 108,919 ETH, valued at around $400 million, into the exchange. Following Sun's clarification, Ethereum's price has shown signs of recovery, climbing over 2% to surpass the $3,400 mark. Analysts are optimistic about the current market conditions and suggest that Ethereum may be forming a bullish pattern. To achieve a rally to $4,000, Ethereum must overcome the resistance level at $3,542.

The recent clarification from Sun has alleviated fears of a selloff and contributed to a more positive market sentiment. Analysts believe that Ethereum is well-positioned for a significant rally in the coming months. The recent developments surrounding Justin Sun and Ethereum highlight the volatility of the cryptocurrency market and the importance of transparency and communication.

Ethereum's underlying technology and potential use cases, such as decentralized finance and non-fungible tokens, continue to attract attention. The ongoing development of Ethereum 2.0 further enhances its appeal. With the market reacting positively to Sun's reassurances, Ethereum has the potential to reach new price milestones.

The interplay between market sentiment, technical analysis, and fundamental developments will shape Ethereum's narrative in the future.