Is the Ethereum Massacre Coming? Celsius’ $125M Move Threatens ETH Price
Ethereum price could be: Post-spot Bitcoin ETF is doing well. Although launched, recent movements in Celsius risk destabilizing price movements. The now-bankrupt cryptocurrency lender appears to have begun a plan to repay its creditors after on-chain data revealed that ETH holdings had been moved to cryptocurrency exchanges.
According to cryptocurrency market intelligence firm Arkham Intelligence, Chelsea Network transferred $125 million worth of ETH to various cryptocurrency exchanges last week.
Celsius transfers ETH to the exchange.
According to the data, between January 8 and 12, Chelsea made $95.5 million worth of transfers to cryptocurrency exchange Coinbase and also sent $29.73 million to FalconX. At the time of this writing, the Chelsea Network’s balance sheet It holds 584,601 ETH worth $1.47 billion. Notably, the ledgers have 9799 BTC worth $418.2 million and 659 million CEL tokens worth $133.2 million, among other cryptocurrencies.
Chelsea appears to have taken the opportunity to unload over $125 million of ETH during ETF Week.
Last week, they deposited $95.5 million to Coinbase and sent $29.73 million to FalconX.
There is still $1.4 billion (540K ETH) remaining. https://t.co/jp1PJbN46r pic.twitter.com/xgfX6yU5Ye
— Arkham (@ArkhamIntel) January 13, 2024
Celsius’ motivations behind the move to the exchange make no sense other than an intentional sale, as the company is in the process of paying off its debts under bankruptcy proceedings.
Celsus filed for bankruptcy in July 2022, shortly after the collapse of the TerraUSD and LUNA ecosystems, leaving creditors with their funds trapped in the platform for the past 18 months. However, the disappeared cryptocurrency lending institution It’s making big moves Refunds are made to creditors during bankruptcy proceedings. According to reports, The company sold $240 million worth of assets. ETH in December 2023.
Notably, the company notified of its decision earlier this month on January 5th. To unstake $465 million worth of Ethereum (ETH) is distributed to creditors.
ETH price shows strength as new trading week opens up | Source: ETHUSD on Tradingview.com
Upcoming Ethereum price crash?
Ethereum is currently doing well and is still up 13% over the past 7 days. However, large-scale selling like this tends to shake market confidence and lead to selling by other investors. On the other hand, some people tend to believe that cryptocurrencies are resilient enough.
It is important to note that Ethereum maintained bullish sentiment throughout this transfer, as the price movement showed a 23% increase from $2,191 on January 8 to $2,706 on January 12. Ethereum has since fallen and is currently trading at $2,514. According to coin glassIn the last 24 hours, $23.84 million worth of ETH positions were liquidated.
Despite recent large transfers, Chelsea still holds significant cryptocurrency assets including ETH, BTC, MATIC and LINK. If you decide to continue selling these assets, you could see further declines in their prices, especially the current Ethereum price. $2,500 Support Test level.
Onchain Data from Spotonchain Additionally, FTX and Alameda Research reported the movement of 1,000 ETH worth $2.33 million to cryptocurrency exchange Coinbase during the week.
Featured image from The Daily Hodl, Chart from Tradingview.com
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