Ethereum (ETH) is about to suffer a potential sell-off worth $1 billion. The major deal stems from actions by bankrupt cryptocurrency lender Celsius. A report from on-chain analyst Lookonchain showed that Celsius transferred 459,561 ETH to various exchanges, estimated to be worth approximately $1.014 billion.
Specifics of this massive allocation include: 297,454 ETH ($656.5 million) transferred to Coinbase Prime, 146,507 ETH transferred to Paxos Treasury, and 7,800 ETH ($17.2 million) transferred to FalconX and Coinbase respectively. Despite the transfer, Lookonchain revealed that Celsius still retains 62,468 ETH in reserves, worth approximately $139 million.
Celsius to 459,561 $ETH($1.014B) Posted 9 hours ago.
297,454 $ETH($656.5 million) → #CoinbasePrime
146,507 $ETH ($323.3 million) → #PaxosTreasury
7,800 $ETH($17.2 million) → #FalconX
7,800 $ETH($17.2 million) → #Coinbase.and # degrees celsius There are still 62,468 $ETHremaining ($139 million). https://t.co/O71a2LfeKg pic.twitter.com/adcxQA3POn
— Lookonchain (@lookonchain) January 26, 2024
This major transfer has significant ramifications in the Ethereum market. It poses a challenge as it puts considerable pressure on the price of Ethereum and has potential implications for broader market sentiment. If $1.014 billion worth of ETH is sold at the same time, Ethereum could fall significantly.
Ethereum transactions before Celsius
Celsius’ latest Ethereum transaction is not an isolated incident. LookonChain previously identified significant transfers related to Celsius, including a deposit of 13,000 ETH ($30 million) on Coinbase and a deposit of 2,200 ETH ($5 million) on FalconX.
While these moves demonstrate Celsius’ proactive approach to addressing financial challenges, they also signal potential volatility in Ethereum’s market value.
Additionally, Arkham Intelligence reported that Celsius liquidated more than $125 million worth of Ethereum between January 8 and 12. The main purpose of these sales is to satisfy obligations to creditors.
Dune Analytics also highlighted the pattern of massive Ethereum redemptions, noting that redemptions exceeded $1.6 billion. This number represents the highest Ethereum redemption volume on record since last year’s Shanghai update.
As part of the bankruptcy proceedings, Celsius continues to liquidate Ethereum assets to pay off debts.
Ethereum’s market reaction
After trading on Ethereum, the asset’s value has fallen by nearly 10% over the past week, from a high of over $2,600 to around $2,186 yesterday. However, Ethereum has recovered slightly, rising 2.2% in the past 24 hours and trading at $2,258 at press time.
Amid these market developments, renowned cryptocurrency analyst Michael van de Poppe has identified three key factors that could signal a bullish phase for ETH. An important factor is Bitcoin’s market behavior, which often sets the tone for altcoins.
Van de Poppe noted that signs of Bitcoin bottoming out often precede altcoin rallies, suggesting that Ethereum may be on the verge of a turnaround. He also highlighted growing interest in spot Ethereum ETFs, which could drive Ethereum’s market value in the coming weeks.
In addition, Ethereum’s upcoming network upgrade aims to significantly reduce transaction costs and is expected to increase the network’s efficiency and scalability, potentially enhancing its market appeal.
Momentum towards $ETH It’s likely to arrive in the next few weeks.
argument:
– #bitcoin Bottoming out is the trigger for a new rally in altcoins.
– Ethereum spot ETF hype.
– Ethereum launches new upgrade, reducing costs by 90%. pic.twitter.com/N8bDi52F8M— Michael van der Poppe (@CryptoMichNL) January 25, 2024
Featured image Unsplash, chart from TradingView
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