Why Is Celsius Sending $125 Million Worth of ETH to the Exchange
- Celsius transfers its ETH to exchanges. CEL’s open interest going forward has continued to decline. Data from Arkham Intelligence revealed that bankrupt cryptocurrency lender Celsius Network ( [CEL] ) transferred more than $125 million [ETH] worth of Ethereum to major exchanges last week. Data from Arkham Intelligence revealed that Celsius had transferred $95.5 million of its ETH to Coinbase and $29.73 million of ETH to FalconX.At press time, Celsius’ remaining ETH tokens were valued at $1.38 billion. In a previous report the troubled crypto lender said it had initiated a process to reclaim and rebalance its assets. According to Celsius, this was done to fulfill its obligations under the bankruptcy proceedings. Following this announcement some analysts were of the opinion that flooding the market with large amounts of ETH coins would put pressure on the value of ETH coins. The hype surrounding the recently approved Bitcoin Spot ETF prevented this and the altcoin markets saw a significant increase in value over the last week.
Data from CoinMarketCapshows that the price of ETH has increased by 13% in the last seven days. CEL Weekly Chart
CEL price is up 4% during the recent altcoin rally. At press time, the transaction price was $0.2069.
Due to Celsius’ restructuring efforts, demand for CEL has decreased significantly. CEL’s value has fallen 24% in the last month. Its value has fallen by almost 70% in the last year.
As traders expect CEL prices to continue falling, they have closed more trading positions. Data from Coinglass () shows that between December 29, 2023 and January 13, 2024, the token’s open interest in futures fell by 36%. Due to the price drop, most of the long positions were liquidated. Source: Coinglass.
CEL’s weekly chart confirms the bearish sentiment that has led traders to limit their token accumulation.
CEL/USDT TradingView
For example, CEL’s Chaikin Money Flow (CMF) was -0.04 at press time. CMF readings below zero are a sign that the market is weakening because they indicate that investors are withdrawing capital, leading to falling prices.
Likewise, the Alt’s Relative Strength Index remained below its midline at 46.89. This suggested that token accumulation was being outpaced by selling activity.
