Celsius sends ETH worth $125 mln to exchanges – Why?

• Celsius has begun transferring its ETH holdings to exchanges.
• CEL’s future Open Curiosity has continued to plunge.

Bankrupt cryptocurrency lender Celsius Community [CEL] has transferred over $125 million price of Ethereum [ETH] to main exchanges inside the previous week, information from Arkham Intelligence revealed. 

Info retrieved from the info supplier confirmed that Celsius has despatched  $95.5 million price of its ETH holdings to Coinbase, whereas $29.73 million price of ETH has been transferred to FalconX.

At press time, Celsius’ remaining ETH holdings sat at roughly 539,000 tokens, valued at roughly $1.38 billion.

In an earlier report, the troubled crypto lender introduced that it initiated a means of recalling and rebalancing its property, a part of which was unstaking its ETH holdings.

In response to Celsius, this was to fulfill its liabilities beneath the chapter proceedings.

Following this announcement, some analysts opined that flooding the markets with massive volumes of ETH cash would put downward strain on its worth.

Nevertheless, the hype across the not too long ago permitted Bitcoin Spot ETF forestalled this, because the altcoin market noticed a major rally within the simply concluded week.

In response to information from CoinMarketCap, ETH’s worth has climbed by 13% within the final seven days. 

CEL on a weekly chart

Amid the rally within the altcoin market skilled within the final week, CEL has managed to document a 4% value surge. At press time, the alt exchanged palms at $0.2069.

As Celsius intensifies restructuring efforts, the demand for CEL has plummeted considerably prior to now few months. Within the final month alone, CEL’s value declined by 24%. Previously yr, its worth has dropped by nearly 70%. 

As many count on CEL’s value to maintain declining, merchants have more and more closed their commerce positions. 

Between the twenty ninth of December 2023 and the thirteenth of January 2024, the token’s futures Open Curiosity decreased by 36%, in keeping with information from Coinglass.

On account of the value decline, principally lengthy positions have since been liquidated. 

Supply: Coinglass

CEL’s value actions assessed on a weekly chart confirmed the presence of bearish sentiments which have precipitated merchants to restrict token accumulation. 

Supply: CEL/USDT on TradingView

For instance, its Chaikin Cash Stream (CMF) was -0.04 at press time. A unfavorable CMF worth is an indication of market weak point, because it implies that traders more and more take out capital from the market, inflicting costs to plunge additional. 

Likewise, the alt’s Relative Energy Index (RSI) rested beneath its middle line at 46.89. This confirmed that promoting exercise outpaced token accumulation.