ethereum (eth) is about to witness a potential $1 billion liquidation. This major transaction originates from shares of Celsius, a bankrupt cryptocurrency lender. Reports on-chain analyst Lookonchain indicate that Celsius initiated the transfer of 459,561 eth, with an estimated value of 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 sums totaling 7,800 eth ($17.2 million) sent to FalconX and Coinbase, respectively. Despite this transfer, Lookonchain revealed that Celsius still maintains a reserve of 62,468 eth, valued at approximately $139 million.
Celsius transferred 459,561 $eth($1,014B) came out 9 hours ago.
297,454 $eth($656.5 million) → #CoinbasePrime
146,507 $eth ($323.3 million) → #Treasure of Paxos
7,800 $eth($17.2 million) → #FalcónX
7,800 $eth($17.2 million) → #Coinbase.AND # Celsius still has 62,468 $eth($139 million) remaining.https://t.co/O71a2LfeKg pic.twitter.com/adcxQA3POn
— Lookonchain (@lookonchain) January 26, 2024
This important transfer has significant weight in the ethereum market. It poses a challenge as it puts considerable pressure on the price of ethereum, with potential implications for broader market sentiment. ethereum could see a significant drop if the $1.014 billion worth of eth is sold simultaneously.
Previous ethereum Transactions on Celsius
Celsius's latest ethereum transactions are not isolated events. LookonChain has previously detected large 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 indicate Celsius' proactive strategy in managing its financial challenges, they also signal potential volatility in ethereum's market value.
Additionally, Arkham Intelligence reports that between January 8 and 12, Celsius liquidated more than $125 million worth of ethereum. The main objective of these sales is to fulfill obligations to creditors.
Dune Analytics also highlighted the pattern of large-scale ethereum redemptions, noting redemptions exceeding $1.6 billion. Since last year's Shanghai update, this figure represents the largest ethereum swaps on record.
As part of its bankruptcy proceedings, Celsius continues to liquidate ethereum holdings to pay debts.
ethereum market reaction
In the wake of Celsius' ethereum trading, the asset has seen a nearly 10% drop in value over the past week, falling from a high of over $2,600 to around $2,186 yesterday. However, ethereum has recovered slightly, rising 2.2% in the last 24 hours, with a trading price of $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 indicate a bullish phase for eth. An important element is the behavior of the bitcoin market, which often sets the tone for altcoins.
Van de Poppe notes that signs of bitcoin bottoming typically precede altcoin rallies, suggesting a possible rally for ethereum. He also emphasizes the growing enthusiasm around ethereum spot ETFs, which could catalyze ethereum's market value in the coming weeks.
Additionally, ethereum's impending network upgrades, which aim to significantly reduce transaction costs, are expected to improve the network's efficiency and scalability, potentially increasing its market appeal.
The impulse towards $eth It will probably arrive in the next few weeks.
Arguments:
– bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>#bitcoin Hitting bottom is a trigger for altcoins to make a new run.
– ethereum Spot ETF hype.
– ethereum launches new updates to reduce 90% of costs. pic.twitter.com/N8bDi52F8M—Michaël van de Poppe (@CryptoMichNL) January 25, 2024
Featured image Unsplash, TradingView chart
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
