The distribution of this sell-off was as follows: 297,454 ETH ($656.5 million) moved to Coinbase (NASDAQ:COIN) Prime, 146,507 ETH to Paxos Treasury and smaller amounts of 7,800 ETH each, totaling $17.2 million, were transferred to FalconX and Coinbase. Despite this massive transfer, Celsius reportedly retains a reserve of 62,468 ETH, worth around $139 million.
Such a colossal sale exerts immense pressure on Ethereum’s price and could significantly sway market sentiment. The immediate concern for investors and traders is whether Ethereum’s liquidity and market capitalization can absorb such a hit without triggering a broad market downturn.
From a technical analysis standpoint, the massive outflow from Celsius is a bearish signal, likely to test Ethereum’s local support levels. A crucial support to watch is around the $2,000 price range, a psychological and technical support level, which, if breached, could see the price tumble to the next significant support at $1,800. This level has historically acted as a strong buy zone and may serve as a robust defense against further declines.
Conversely, resistance levels have become more formidable due to the sell-off. Any potential recovery will have to confront the resistance at $2,200, which previously acted as a support level. A break above this could see Ethereum attempt to reclaim higher price levels, possibly testing the $2,400 resistance.
The substantial sell-off initiated by Celsius has placed Ethereum in a problematic position. Although the Ethereum network’s fundamentals remain robust, the asset’s price resilience in the face of such a significant sell-off shows the actual state of the market.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
