By NewsBTC - 3 months ago - Reading Time: 3 minutes
Ethereum Faces Market Tremors As Celsius Offloads $1 Billion in ETH
Ethereum (ETH) is about witnessing a potential sell-off worth $1 billion. This significant transaction is rooted in actions by Celsius, a bankrupt crypto lender. Reports from on-chain analyst Lookonchain indicate that Celsius initiated the transfer of 459,561 ETH, estimated to be worth around $1.014 billion, to various exchanges.
The breakdown of this large-scale distribution includes 297,454 ETH ($656.5 million) moved to Coinbase Prime, 146,507 ETH to Paxos Treasury, and smaller sums totaling 7,800 ETH ($17.2 million) sent to FalconX and Coinbase, respectively. Despite this transfer, Lookonchain disclosed that Celsius still maintains a reserve of 62,468 ETH, valued at roughly $139 million.
Celsius transferred 459,561 $ETH($1.014B) out 9 hrs ago.
297,454 $ETH($656.5M) → #CoinbasePrime 146,507 $ETH ($323.3M) → #PaxosTreasury 7,800 $ETH($17.2M) → #FalconX 7,800 $ETH($17.2M) → #Coinbase.
And #Celsius still has 62,468 $ETH($139M) left.https://t.co/O71a2LfeKg pic.twitter.com/adcxQA3POn
— Lookonchain (@lookonchain) January 26, 2024
This significant transfer carries significant weight in the Ethereum market. It poses a challenge as it exerts considerable pressure on Ethereum’s price, with potential implications for broader market sentiment. Ethereum could see a significant plunge if the $1.014 billion worth of ETH is sold simultaneously.
Celsius’ Previous Ethereum Transactions
Celsius’ latest Ethereum transactions aren’t isolated events. LookonChain has previously spotted significant transfers linked to Celsius, including a deposit of 13,000 ETH ($30 million) on Coinbase and 2,200 ETH ($5 million) to FalconX.
While these moves indicate Celsius’ proactive strategy in managing its financial challenges, they also signal potential volatility for Ethereum’s market value.
Furthermore, Arkham Intelligence reports that between January 8 and January 12, Celsius liquidated over $125 million worth of Ethereum. The primary objective of these sales is to fulfill obligations to creditors.
Dune Analytics also highlighted the pattern of large-scale Ethereum redemptions, noting redemptions exceeding $1.6 billion. Since last year’s Shanghai update, this figure represents the highest Ethereum redemptions recorded.
As part of its bankruptcy proceedings, Celsius continues liquidating Ethereum holdings to pay off debts.
Ethereum’s Market Reaction
In the aftermath of Celsius’s Ethereum transactions, the asset has seen a nearly 10% decline in value over the past week, dropping from a high above $2,600 to around $2,186 yesterday. However, Ethereum has slightly recovered, rising by 2.2% in the past 24 hours, with a trading price of $2,258 at the time of writing.
Amid these market developments, Michael van de Poppe, a renowned crypto analyst, has identified three key factors that could signal a bullish phase for ETH. A significant element is Bitcoin’s market behavior, often setting the tone for altcoins.
Van de Poppe notes that Bitcoin’s indications of bottoming out usually precede rallies in altcoins, suggesting a potential upturn for Ethereum. He also emphasizes the increasing excitement around spot Ethereum ETFs, which could catalyze Ethereum’s market value in the coming weeks.
Additionally, Ethereum’s impending network upgrades, which aim to reduce transaction costs significantly, are expected to enhance the network’s efficiency and scalability, potentially boosting its market appeal.
The momentum towards $ETH is probably going to come in the next few weeks.
Arguments: – #Bitcoin bottoming out is a trigger for altcoins to make a new run. – Ethereum Spot ETF hype. – Ethereum launching new upgrades to reduce 90% of the costs. pic.twitter.com/N8bDi52F8M
— Michaël van de Poppe (@CryptoMichNL) January 25, 2024
Featured image Unsplash, Chart from TradingView
Original source: NewsBTC