Ethereum (ETH) is facing a potential drop worth $1 billion. This important deal is rooted in the actions of bankrupt crypto lender Celsius. report On-chain analyst Lookonchain suggests that Celsius initiated transfers of 459,561 ETH, estimated to be worth approximately $1.014 billion, to various exchanges.
The breakdown of this large distribution includes 297,454 ETH ($656.5 million) going to Coinbase Prime, 146,507 ETH going to Paxos Treasury, and a smaller total of 7,800 ETH ($17.2 million) going to FalconX and Coinbase, respectively. was sent to. Despite this move, Lookonchain revealed that Celsius still maintains reserves of 62,468 ETH (worth approximately $139 million).
Celsius transfer 459,561 $ETH($1.014B) Left 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 There are still 62,468 people $ETH($139 million) remaining.https://t.co/O71a2LfeKg pic.twitter.com/adcxQA3POn
— Lookonchain (@lookonchain) January 26, 2024
This significant transfer has important implications for the Ethereum market. This poses a challenge as it puts significant pressure on the price of Ethereum and has a potential impact on broader market sentiment. If $1.014 billion worth of ETH is sold at the same time, Ethereum could suffer a significant drop.
Celsius’ past Ethereum transactions
Celsius’ latest Ethereum transaction is not an isolated incident. LookonChain has previously discovered significant transfers related to Celsius, including a 13,000 ETH ($30 million) deposit to Coinbase and a 2,200 ETH ($5 million) deposit to FalconX.
While these moves demonstrate Celsius’ aggressive strategy to address financial challenges, they also signal potential volatility in Ethereum’s market value.
Furthermore, Arkham Intelligence report Between January 8th and January 12th, Celsius liquidated $125 million worth of Ethereum. The primary purpose of these sales is to satisfy obligations to creditors.
Dune Analytics also highlighted a pattern of large-scale Ethereum redemptions, noting that redemptions exceeded $1.6 billion. This number represents the highest Ethereum redemption amount recorded since last year’s Shanghai Update.
As part of its bankruptcy proceedings, Celsius continues to liquidate its Ethereum holdings to pay off debt.
Ethereum market reaction
Celsius’ Ethereum trading has seen the asset’s value drop nearly 10% over the past week, falling from a high of more than $2,600 to around $2,186 yesterday. However, Ethereum has rebounded slightly, rising 2.2% in the past 24 hours and was trading at $2,258 at the time of writing.
Amid these market trends, renowned crypto analyst Michael Van de Poppe has identified three key factors that could signal a bullish phase for ETH. A key factor is Bitcoin market trends, which often determine altcoin trends.
Van de Poppe points out that signs of a bottoming in Bitcoin typically precede a rally in altcoins and signal a potential rally in Ethereum. He also highlighted that excitement around the Spot Ethereum ETF is growing, which could lead to an increase in Ethereum market value in the coming weeks.
Additionally, Ethereum’s impending network upgrade aimed at significantly reducing transaction costs is expected to improve the network’s efficiency and scalability, potentially increasing its market attractiveness.
momentum towards $ETH Probably coming in the next few weeks.
argument:
– #bitcoin A bottoming will trigger a new rally for altcoins.
– Ethereum Spot ETF Hype.
– Ethereum launches new upgrade to reduce costs by 90%. pic.twitter.com/N8bDi52F8M— Michael van de Poppe (@CryptoMichNL) January 25, 2024
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