Justin Sun Joins Ethereum Debate as Tron (TRX) Slides 45% From Peak

Key Takeaways

• Tron (TRX) has fallen since its all-time high of $0.450.
• The price broke out from a short-term resistance trend line.
• Can TRX build on the breakout and begin a bullish reversal?

TRON has performed well in the current market cycle. The upward movement was gradual throughout 2023 and most of 2024 but became parabolic in November.

TRX increased nearly 200% quickly, reaching a new all-time high price in December.

However, the rise was short-lived since TRX fell in 2025, losing a significant portion of its previous gains.

With that in mind, let’s analyze the TRX price action to see what lies ahead in the next few months.

Justin Sun’s Ethereum Comments

A heated debate about the Ethereum Foundation (EF) is transpiring on X.  Ethereum founder Vitalik Buterin has been much more active online, announcing new projects such as Etherealize and protecting his pick for head of the Ethereum foundation Aya Miyaguchi .

In one of the tweets that drew c oncern, Buterin states that he alone decides on the EF leadership, going against the principles of decentralization that Ethereum tries to uphold.

There were rumors that Lido DAO founder Konstantin Lomashuk had formed a second Ethereum foundation. Those were put to bed by Lomashuk , who stated that no foundation had been created yet. Tron founder Justin Sun outlined his four-step plan on what he would do if he were Ethereum Foundation leader:

1. Stop EF selling: selling ETH tokens by the EF foundations has been frowned upon in this cycle since it creates the impression that the foundation itself does not believe in the token. Sun proposes to cover operational costs through AAVE lending, staking yields, and stablecoin borrowing.
2. Heavily tax Layer-2 solutions: Impose a tax on Layer-2 solutions until Ethereum generates $5 billion in taxes. It is no secret that the extremely low fees have made the ETH supply inflationary, and Layer-2s are enjoying considerable profits without paying their fair share to Layer-1.
3. Downsize the foundation: Retain only the most capable team members and increase their salaries.
4. Adjust rewards and increase fee burns: Reduce node rewards and emphasize fee-burning mechanisms to ensure that Ethereum remains deflationary.

Sun wants to focus all resources on Ethereum’s core Layer-1 development, putting aside its Layer-2-centric roadmap.

TRX Price Falls After High

Since November 2022, the TRX price has gradually increased inside an ascending parallel channel. Initially, The movement was gradual, respecting the channel’s resistance and support trend lines.

This changed in November, when TRX broke out from the channel and the $0.165 horizontal resistance area, eventually reaching a new all-time high price of $0.450 a few weeks later. The high coincided with Justin’s Sun purchase of “Comedian.”

Unfortunately, that was Tron’s high point this cycle, as the price has fallen by 45% since the high without showing any signs of slowing down.

Technical indicators show weakness. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are falling. The RSI has declined below 70, while the MACD is close to making a bearish cross.

The two closest support levels are at the channel’s resistance trend line at $0.200 and the $0.165 horizontal support area.

Relief Rally Incoming?

The daily chart gives some hope for a relief rally.  TRX broke out from a descending resistance trend line after creating a support base near $0.230. The daily RSI and MACD increased along the breakout, nearly crossing their bullish thresholds.

While the breakout could lead to higher prices, it may be a relief rally before the TRX price falls to new lows.

The critical test will come once TRON reaches the 0.5 Fibonacci retracement resistance level at $0.334, a horizontal resistance area.

If TRX breaks above it, it may clear the road for a new all-time high. However, failure to do so could lead to new lows and a retest of the $0.200 level.

Falling below the resistance trend line will invalidate the breakout and could lead to an immediate plunge toward $0.200.

Tepid Sentiment

The TRX price took the spotlight once it reached its all-time high in December. However, it has failed to sustain its momentum and has shed 45% of its value since the high.

There is a glimmer of hope from a short-term breakout, but the TRX price needs to sustain its momentum and create a higher low to set the stage for a bullish trend reversal potentially.