Ethereum (ETH) is about witnessing a potential $1 billion sell-off. This significant transaction is rooted in actions by Celsius, a bankrupt cryptocurrency lender. Reports from on-chain analyst Lookonchain indicates that Celsius initiated the transfer of 459,561 ETH, estimated to be 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 amounts totaling 7,800 ETH ($17.2 million) sent to FalconX and Coinbase respectively. Despite this transfer, Lookonchain announced that Celsius still maintains a reserve of 62,468 ETH, worth approximately $139 million.
Celsius transferred 459,561 $ETH($1.014 billion) Spent 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 #Celsius still has 62,468 $ETH($139 million) 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 puts significant pressure on Ethereum’s price, with potential implications for broader market sentiment. Ethereum could see a significant dip if the $1.014 billion ETH sells off at the same time.
Celsius’ previous Ethereum transactions
Celsius’s latest Ethereum transactions are not isolated events. LookonChain has previously noted significant transfers linked to Celsius, including a deposit of 13,000 ETH ($30 million) to Coinbase and 2,200 ETH ($5 million) to FalconX.
While these moves point to Celsius’ proactive strategy in managing the financial challenges, they also indicate potential volatility for Ethereum’s market value.
Also Arkham Intelligence reports that Celsius liquidated more than $125 million worth of Ethereum between January 8 and 12. The primary purpose of these sales is to fulfill obligations to creditors.
Dune Analytics also highlighted Ethereum’s pattern of large-scale redemptions, noting redemptions of over $1.6 billion. Since last year’s Shanghai update, this figure represents the highest recorded Ethereum redemptions.
As part of the bankruptcy proceedings, Celsius continues to liquidate Ethereum holdings to pay off debts.
Ethereum’s market reaction
In the wake of Celsius’ Ethereum transactions, the asset has seen a nearly 10% drop in value over the past week, from a high above $2,600 to around $2,186 yesterday. However, Ethereum has recovered somewhat and is up 2.2% over the past 24 hours, trading at $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. An important element is Bitcoin’s market behavior, which often sets the tone for altcoins.
Van de Poppe notes that Bitcoin’s bottoming indications usually precede rallies in altcoins, signaling a possible rebound for Ethereum. He also highlights the growing excitement around spot Ethereum ETFs, which could catalyze Ethereum’s market value in the coming weeks.
Furthermore, Ethereum’s upcoming network upgrades, which aim to significantly reduce transaction fees, are expected to improve the network’s efficiency and scalability, potentially increasing its market appeal.
The momentum direction $ETH will probably come in the next few weeks.
Arguments:
– #Bitcoin The bottom is a trigger for altcoins to make a new run.
– Ethereum Spot ETF hype.
– Ethereum launches new upgrades to reduce 90% of costs. pic.twitter.com/N8bDi52F8M— Michaël van de Poppe (@CryptoMichNL) January 25, 2024
Featured image Unsplash, chart from TradingView
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