- Celsius has started transferring its ETH holdings to exchanges.
- CEL’s future Open Interest has continued to decline.
Bankrupt cryptocurrency lender Celsius Network [CEL] transferred more than $125 million worth of Ethereum [ETH] to major exchanges in the past week, data from Arkham Intelligence revealed.
Information from the data provider shows that Celsius sent $95.5 million worth of ETH holdings to Coinbase, while $29.73 million worth of ETH was transferred to FalconX.
At the time of writing, Celsius’ remaining ETH holdings amounted to approximately 539,000 tokens, worth approximately $1.38 billion.
In an earlier reportthe troubled cryptocurrency lender announced that it had initiated a process to recall and rebalance its assets, part of which included unwinding its ETH holdings.
According to Celsius, this was to meet its obligations under the bankruptcy proceedings.
Following this announcement, some analysts thought that flooding the markets with large amounts of ETH coins would put downward pressure on their value.
However, the hype surrounding the recently approved Bitcoin Spot ETF has prevented this from happening, as the altcoin market saw a significant rally in the just-concluded week.
According to data from CoinMarketCapthe value of ETH has increased by 13% over the past seven days.
CEL on a weekly chart
Amid the rally in the altcoin market over the past week, CEL has managed to record a 4% price increase. At the time of writing, the alt was exchanging hands at $0.2069.
As Celsius intensifies restructuring efforts, demand for CEL has fallen significantly in recent months. In the last month alone, the price of CEL fell by 24%. Over the past year, its value has fallen by almost 70%.
As many expect the price of CEL to continue to decline, traders have increasingly closed their trading positions.
Between December 29, 2023 and January 13, 2024, the token’s futures Open Interest fell 36%, according to data from Mint glass.
As a result of the price drop, many long positions have now been liquidated.
Source: Coinglass
CEL’s price movements, assessed on a weekly chart, confirmed the presence of bearish sentiments that have led traders to limit token accumulation.
Source: CEL/USDT on TradingView
For example, the Chaikin Money Flow (CMF) was -0.04 at the time of writing. A negative CMF value is a sign of market weakness because it means investors are withdrawing more and more capital from the market, causing prices to fall further.
Similarly, the alt’s Relative Strength Index (RSI) rested below the midline at 46.89. This showed that sales activity exceeded token accumulation.