Ethereum Under Pressure: Celsius’ $1 Billion Ethereum Selloff Unleashes Uncertainty

Read Time:2 Minute, 50 Second

Celsius, a distressed crypto lender, initiates a significant sell-off of $1 billion in Ethereum (ETH), transferring 459,561 ETH to various exchanges.

The massive liquidation raises concerns about potential Ethereum price volatility and broader market implications, with the crypto community closely monitoring the ongoing developments.

Ethereum (ETH) is bracing for a potential seismic shift in its market dynamics as Celsius, a distressed crypto lender, executes a massive sell-off of $1 billion in ETH. On-chain analyst Lookonchain reveals that Celsius initiated the transfer of 459,561 ETH, valued at around $1.014 billion, to various exchanges.

The breakdown of this colossal distribution includes 297,454 ETH ($656.5 million) moved to Coinbase Prime, 146,507 ETH to Paxos Treasury, and smaller sums totaling 7,800 ETH ($17.2 million) sent to FalconX and Coinbase. Despite this transfer, Lookonchain discloses that Celsius still holds a reserve of 62,468 ETH, valued at roughly $139 million.

This sizable transfer casts a looming shadow over the Ethereum market, exerting substantial pressure on its price and potentially influencing broader market sentiment. The simultaneous sale of $1.014 billion worth of ETH could lead to a significant plunge in Ethereum’s value.

Celsius’ Ongoing Ethereum Moves

Celsius’ recent Ethereum transactions are not isolated incidents. LookonChain has previously identified significant transfers linked to Celsius, including a $30 million deposit of 13,000 ETH on Coinbase and a $5 million transfer of 2,200 ETH to FalconX. While these moves reflect Celsius’ proactive approach to managing financial challenges, they also signal potential volatility for Ethereum’s market value.

#Grayscale just transferred ANOTHER 10,923.49 Bitcoins worth over ~$450 million to #CoinbasePrime and 1 other New Addresses.

Currently Grayscale Holding: 502,043.26 BTC

— Ok Researcher (@Ok_Researcher) January 27, 2024

Moreover, Arkham Intelligence reports that between January 8 and January 12, Celsius liquidated over $125 million worth of Ethereum to fulfill obligations to creditors. Dune Analytics highlights a pattern of large-scale Ethereum redemptions, exceeding $1.6 billion since last year’s Shanghai update, representing the highest recorded Ethereum redemptions.

Ethereum’s Market Reaction

Following Celsius’s Ethereum transactions, Ethereum experienced a nearly 10% decline in value over the past week, dropping from a high above $2,600 to around $2,186. However, Ethereum has shown a slight recovery, rising by 2.2% in the past 24 hours, with a trading price of $2,258 at the time of writing.

The momentum towards $ETH is probably going to come in the next few weeks.

#Bitcoin bottoming out is a trigger for altcoins to make a new run.
– Ethereum Spot ETF hype.
– Ethereum launching new upgrades to reduce 90% of the costs.

— Michaël van de Poppe (@CryptoMichNL) January 25, 2024

Renowned crypto analyst Michael van de Poppe identifies three key factors signaling a potential bullish phase for ETH. He notes that Bitcoin’s market behavior often precedes rallies in altcoins, suggesting a potential upturn for Ethereum. Additionally, the increasing excitement around spot Ethereum ETFs could catalyze Ethereum’s market value in the coming weeks.

As Celsius continues its Ethereum liquidation to meet debt obligations, the crypto community closely watches for potential market impacts and the resilience of Ethereum in the face of these challenges.

The post Ethereum Under Pressure: Celsius’ $1 Billion Ethereum Selloff Unleashes Uncertainty appeared first on Crypto News Focus.

Leave a Reply

Your email address will not be published. Required fields are marked *