Celsius Networks, a crypto lending firm undergoing bankruptcy, has initiated significant transactions involving large amounts of Ethereum (ETH) as part of its recovery plans during ongoing bankruptcy proceedings. Recent data from Lookonchain reveals that $35 million worth of Ethereum was transferred to major exchanges from Celsius wallets, indicating a strategic move to liquidate ETH and strategically reallocate funds.
In the past 10 hours, Celsius deposited $30 million worth of 13,000 ETH to Coinbase and $5 million worth of 2,200 ETH to FalconX. These transactions suggest a deliberate effort by Celsius to dispose of ETH assets during bankruptcy and strategically position its funds.
Despite these transactions, two staking wallets associated with Celsius continue to hold a significant amount of Ethereum, totaling 557,081 ETH, valued at approximately $1.3 billion. This highlights the complex financial dynamics within Celsius and underscores the ongoing importance of Ethereum in the crypto space.
Arkham Intelligence reported that between January 8 and January 12, Celsius liquidated $125 million worth of Ethereum as a strategic move aimed at repaying creditors and managing financial obligations.
In response to Celsius’s recent actions, the price of Ethereum experienced significant selling pressure, dropping below the $2,350 level and witnessing a 4% decline. Market participants are concerned, especially if ETH fails to sustain key support levels, potentially leading to a retreat to the next significant support around $2,000. The correlation between significant wallet activities and profit-taking by owners suggests a delicate balance in market dynamics influenced by strategic moves of influential entities.