Will Ethereum bear the brunt of Celsius’ moves?

• Celsius made massive ETH transactions in the wake of its bankruptcy proceedings.
• Gas usage on the network declined, however, NFT activity remained high.

The most recent data insights from on-chain analytics provider LookonChain revealed massive transactions within the Celsius wallet over the past 10 hours.

Specifically, a deposit of 13,000 Ethereum [ETH], valued at $30.34 million, was executed on Coinbase, alongside another transaction involving the deposit of 2,200 ETH, totaling $5.13 million, to FalconX.

Turning up the heat

For context, Celsius Networks is a cryptocurrency lending platform undergoing bankruptcy proceedings. This is why it has been actively transferring a substantial portion of its Ethereum holdings to various exchanges.

This process of unstaking ETH and relocating it to exchanges is a strategic move aligned with the platform’s recovery efforts during the ongoing bankruptcy proceedings.

According to the most recent data available, two staking wallets affiliated with Celsius retained a considerable quantity of Ethereum.

The aggregate holdings within these staking wallets amounted to 557,081 ETH at press time, equivalent to an approximate value of $1.3 billion.

ETH sees red

The amount of ETH being held by Celsius could affect market sentiment, and their sudden moves may cause FUD around ETH.

At press time, the king of altcoins traded at $2,229.54, with its price having fallen by 6.46% in the last 24 hours. Its MVRV ratio also fell during this period, denoting that many holders posted losses.

This could be a positive development for ETH, as there was no incentive for these addresses to sell their holdings.

Additionally, despite Celsius depositing their ETH to exchanges, the concentration of ETH held by whales remained high. The rising interest from whales could help move ETH’s price in a positive direction.

Source: Santiment

Despite these factors, the number of short positions taken against ETH had grown. According to Coinglass’ data, the number of short positions taken against ETH grew to 53.12% in the last few days.

Source: Coinglass

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State of the network

Coming to the state of the network, it was seen that the gas usage on the Ethereum network had plummeted. This meant that overall activity on the network had declined.

However, overall NFT trades on the Ethereum network continued to rise, suggesting that there may be hope for the interest in Ethereum to be rejuvenated in the future.

Source: Santiment