Ethereum: Celsius Sells Over $1 Billion in ETH, Sparks Market Buzz
Ethereum is currently witnessing substantial selling preassure, surpassing the billion-dollar mark.
The root cause of this notable shift can be traced back to Celsius, which reportedly executed a massive sell-off, transferring an astounding 459,561 ETH valued at approximately $1.014 billion across various exchanges.
The distribution of this significant transaction unfolded as follows: 297,454 ETH (equivalent to $656.5 million) found its way to Coinbase Prime, while 146,507 ETH was directed to Paxos Treasury. Smaller portions, each comprising 7,800 ETH and totaling $17.2 million, were dispatched to FalconX and Coinbase.
Celsius transferred 459,561 $ETH($1.014B) out 9 hrs ago.
297,454 $ETH($656.5M) → #CoinbasePrime
146,507 $ETH ($323.3M) → #PaxosTreasury
7,800 $ETH($17.2M) → #FalconX
7,800 $ETH($17.2M) → #Coinbase.And #Celsius still has 62,468 $ETH($139M) left.https://t.co/O71a2LfeKg pic.twitter.com/adcxQA3POn
— Lookonchain (@lookonchain) January 26, 2024
Despite this considerable movement, Celsius appears to have retained a reserve of 62,468 ETH, with an estimated value of around $139 million.
This substantial offloading is exerting notable pressure on Ethereum’s market price and has the potential to significantly influence overall market sentiment. Investors and traders are currently grappling with concerns about Ethereum’s ability to absorb such a substantial blow to its liquidity and market capitalization without triggering a widespread market downturn.
Analyzing the situation from a technical standpoint, the extensive outflow from Celsius serves as a bearish indicator, likely testing Ethereum’s local support levels. A crucial support threshold to monitor is situated around the $2,000 mark, representing both a psychological and technical support level.
If breached, there is a possibility of a descent to the subsequent significant support level at $1,800, historically recognized as a robust buy zone offering a formidable defense against further declines.
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On the flip side, resistance levels have intensified in the aftermath of this sell-off. Any potential recovery is anticipated to encounter resistance at $2,200, a level that previously functioned as a support stronghold.
A breakthrough here could pave the way for Ethereum to strive for higher price levels, potentially putting the $2,400 resistance to the test. The considerable sell-off instigated by Celsius has positioned Ethereum in a challenging scenario.
Despite the unwavering strength of the Ethereum network’s fundamentals, the resilience of the asset’s price in the face of such a substantial sell-off underscores the current dynamics of the market.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
