How might Chelsea’s latest moves affect your ETH holdings?

adminJanuary 6, 2024

Celsius decided to release its ETH holdings to repay its creditors.
Demand for ETH has decreased over the past week.

In a series of posts on X, bankrupt cryptocurrency lender Celsius Network (CEL) announced plans to unwind its Ethereum (ETH) holdings as part of its ongoing restructuring process.

In preparation for asset allocation, Celsius has begun the process of divesting and rebalancing assets to ensure sufficient liquidity.
— Celsius (@CelsiusNetwork) January 4, 2024

The embattled cryptocurrency lender, which has been in bankruptcy court since filing for Chapter 11 in July 2022, noted that it has begun the process of repossessing and reorganizing its assets to ensure sufficient liquidity to offset its liabilities under the bankruptcy process. .

Chelsea added that a lockdown event is expected to take place in the coming days. It also stated that eligible creditors will receive in-kind distributions of Bitcoin (BTC) and ETH in accordance with approved regulations. restructuring plan.

Is Ethereum in danger?

According to data from Nansen, 32% of ETH coins awaiting withdrawal are currently linked to Celis. This accounts for a significant 206,300 ETH, worth about $468.5 million based on the current prices of the major altcoins.

Source: Nansen

With such a large amount of coins ready to hit the market, some trust This will put downward pressure on the price of ETH, he said. But others gave an opinion If Celsius completes its restructuring efforts, it could benefit the ETH market.

At the time of this writing, ETH is trading at $2,250. Alt has seen its value fall 5% in the past week, according to data from . CoinMarketCap.

The coin’s momentum indicator observed on the 24-hour chart has been trending downward since the beginning of the year, suggesting that buying momentum has decreased since then. At the time of reporting, ETH’s Relative Strength Index (RSI) was 48.82 and Money Flow Index (MFI) was 54.74.

Chaikin Money Flow (CMF) spotted below the zero line confirms that traders are increasingly removing liquidity from the ETH market. fear The SEC’s outright rejection of Bitcoin ETFs may be driving this capital removal.

There is a significant positive correlation between BTC and ETH. So, if the BTC price falls due to the rejection, it is certain that the ETH price will also fall.

Is your portfolio green? Check out our ETH Profit Calculator

At the time of this writing, the coin’s negative directional index (red) is above its positive directional index (green). This suggests that selling pressure has exceeded coin accumulation.

The line has been deployed that way since January 3 to accommodate reduced demand.