BitcoinBTCCryptocurrency EducationETHEthereumLINKNews

Ethereum: How Celsius’ latest move might impact your ETH holdings

2 Mins read

  • Celsius has decided to unstake its ETH holdings to repay its creditors.
  • The last week has seen a decline in demand for ETH.

In a series of posts on X, bankrupt cryptocurrency lender Celsius Network [CEL] announced plans to unstake its Ether [ETH] holdings as a part of its ongoing restructuring process. 

The beleaguered crypto lender, which has been in bankruptcy court since it made its Chapter 11 filing in July 2022, noted that it has initiated a  process of recalling and rebalancing assets to guarantee that it has sufficient liquidity to offset its liabilities under the bankruptcy proceedings. 

Celsius added that the unlocking event is expected to take place within the next few days. It further said that eligible creditors will receive in-kind distributions of Bitcoin [BTC] and ETH as per the approved restructuring plan.

Ethereum at risk?

According to data from Nansen, 32% of ETH coins awaiting withdrawal are currently linked to Celsius. This accounts for a substantial 206,300 ETH, valued at about $468.5 million based on the leading altcoin’s current price. 

Source: Nansen

With such a large volume of coins ready to be released onto the market, some believe that it would put downward pressure on ETH’s price. Others, however, opined that it might benefit the ETH market once Celsius concludes its restructuring efforts. 

As of this writing, ETH exchanged hands at $2,250. The alt has witnessed a 5% drop in value in the last week, according to data from CoinMarketCap

The coin’s momentum indicators observed on a 24-hour chart have trended downward since the year began, suggesting a decline in buying momentum since then. At press time, ETH’s Relative Strength Index (RSI) was 48.82, while its Money Flow Index (MFI) was 54.74.

Its Chaikin Money Flow (CMF) spotted below the zero line confirmed that traders have increasingly removed liquidity from ETH markets. Fears of a blanket SEC rejection of Bitcoin ETFs could be driving this capital removal.

A significantly positive correlation exists between BTC and ETH. Hence, should the rejection result in a decline in BTC’s price, ETH’s price is sure to witness a retraction as well. 

The coin’s negative directional index (red) rested above the positive directional index (green) at the time of writing. This suggested that selling pressure exceeded coin accumulation.

These lines have been so positioned since 3rd January, corresponding with the decline in demand. 

Source: ETH/USDT on TradingView


1409 posts

About author
Harry is a crypto enthusiast and experienced trader with a track record of success. With a deep understanding of blockchain technology, he has analyzed market trends and identified profitable opportunities, resulting in impressive returns. Harry 's expertise lies in developing effective trading strategies that leverage the potential of cryptocurrencies. Through his articles, guides, and educational resources, he shares his insights and knowledge, helping individuals make informed trading decisions. With a keen eye for market patterns, Harry has navigated the volatile crypto landscape with confidence. Stay tuned for valuable perspectives and expert advice from Harry as he contributes to the Ailtra platform.
Related posts

Indonesia's presidential elections pose uncertainty for the thriving cryptocurrency industry

1 Mins read
Indonesia, has emerged as a formidable player in the global cryptocurrency space in recent years. However, the nation’s upcoming general elections in…

Understanding the Cryptocurrency Boom - Dogecoin Climbs Due to X Payment Integration, While Stellar and BNB Also Experience Growth

1 Mins read
The cryptocurrency market has been experiencing notable gains over the past few days. This is led by an unexpected and surprising spike…

Crypto Entrepreneur Charged with Defrauding Investors Out Of $150 Million Through Marketing Scheme

1 Mins read
Federal prosecutors have charged a German businessman with securities fraud, wire fraud and money laundering for allegedly scamming over 150 investors out…

🚀 Ailtra Crypto Bot Earned $8.9M Million in 7 Months with 0% Loss!

🚀 Ailtra generated $7.4 in 7 months only!

Unlock 20-75% Monthly Returns & Get $100 FREE!

Meet Ailtra Bot! Launching on 31st March an AI Crypto Bot boasting 20%-75% monthly gains and $7.5M earnings in 7 months. 💸Secure a FREE $100 bonus and up to $20K potential via referrals every month. 🎉Only 1,000 spots are available in first phase – claim yours fast! 🔥 will not disclose your account information to any 3rd parties.