Ethereum (ETH) is witnessing a potential $1 billion selloff. This significant transaction has its roots in the actions of Chelsea, a bankrupt cryptocurrency lender. According to a report by on-chain analyst Lookonchain, Chelsea has begun transferring 459,561 ETH, estimated to be worth around $1.014 billion, to various exchanges.
This large distribution includes 297,454 ETH ($656.5 million) transferred to Coinbase Prime, 146,507 ETH to Paxos Treasury, and smaller amounts totaling 7,800 ETH ($17.2 million) transferred to FalconX and Coinbase respectively. Despite this transfer, Lookonchain revealed that Chelsea still holds 62,468 ETH, worth approximately $139 million.
Celsius Transfer 459,561 $ETH($1.014 billion) was traded 9 hours ago.
297,454 $ETH(USD 656.5 million) → #CoinbasePrime
146,507 $ETH ($323.3 million) → #PaxoTreasury
7,800 $ETH(USD 17.2 million) → #FalconX
7,800 $ETH(USD 17.2 million) → #Coinbase.and #Celsius There are still 62,468 people left. $ETH($139M) remaining. https://t.co/O71a2LfeKg pic.twitter.com/adcxQA3POn
— Lookonchain (@lookonchain) January 26, 2024
These important transfers account for a significant portion of the Ethereum market. This poses a challenge as it puts significant pressure on the price of Ethereum and has potential implications for broader market sentiment. Ethereum could see a significant plunge if $1.014 billion worth of ETH is sold simultaneously.
Celsius’ previous Ethereum transactions
Celsius’ latest Ethereum transaction is not an isolated incident. LookonChain previously discovered significant transfers linked to Chelsea, including deposits of 13,000 ETH ($30 million) to Coinbase and 2,200 ETH ($5 million) to FalconX.
This move signals Chelsea’s proactive strategy to manage its financial problems, while also indicating potential volatility in Ethereum’s market value.
Arkham Intelligence also reported that between January 8 and January 12, Chelsea liquidated $125 million worth of Ethereum. The main purpose of these sales is to fulfill obligations to creditors.
Dune Analytics also highlighted the large-scale Ethereum redemption pattern, citing redemptions in excess of $1.6 billion. Since last year’s Shanghai update, these figures represent the highest Ethereum redemptions ever recorded.
As part of its bankruptcy proceedings, Celsius continues to liquidate its Ethereum holdings to pay off its debts.
Ethereum’s market reaction
In the aftermath of Celsius’ Ethereum trade, the value of the asset has fallen nearly 10% over the past week, falling to around $2,186 from yesterday’s high of over $2,600. However, Ethereum has recovered slightly, with a trading price of $2,258 at the time of this writing, up 2.2% over the past 24 hours.
Amid these market developments, renowned cryptocurrency analyst Michael van de Poppe has identified three key factors that could signal a bullish phase for ETH. An important factor is Bitcoin’s market behavior, which often sets the tone for altcoins.
Van de Poppe points out that a bottom in Bitcoin typically precedes a rally in altcoins, suggesting a potential upside for Ethereum. He also highlights the growing interest in spot Ethereum ETFs, which could drive the market value of Ethereum in the coming weeks.
Additionally, Ethereum’s impending network upgrade, which aims to drastically reduce transaction costs, is expected to improve the network’s efficiency and scalability, potentially increasing its market appeal.
momentum toward $ETH It’ll probably come in the next few weeks.
take over:
– #Bitcoin Hitting bottom becomes an opportunity for altcoins to take a new leap forward.
– Ethereum Spot ETF Hype.
– Ethereum releases new upgrade to reduce costs by 90%. pic.twitter.com/N8bDi52F8M— Michael van de Poppe (@CryptoMichNL) January 25, 2024
Featured Image Unsplash, TradingView Chart
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