Celsius and FTX Ethereum Transfers: Cause for Investor Concern?

Crypto News- Crypto lending platform Celsius and the now-defunct exchange FTX recently engaged in separate Ethereum (ETH) transactions, stirring concerns about potential impacts on the altcoin’s price. According to reports from Lookonchain, Celsius transferred a notable 7,500 ETH to an undisclosed address, raising speculation about a potential deposit to exchanges.

Meanwhile, FTX made a move by sending 3,143 ETH to Coinbase with the intention of selling. Celsius’ decision to liquidate its ETH holdings dates back to July when the beleaguered firm received approval from a U.S. Bankruptcy Court to sell assets to repay creditors. Similar to Celsius, FTX also gained approval for asset liquidation, with a $50 million weekly selling limit on other cryptocurrencies like Bitcoin (BTC) and Solana (SOL).

Celsius and FTX Ethereum Transfers: Cause for Investor Concern?

Despite these transactions, the broader market impact has remained minimal. Notably, Ethereum’s price has demonstrated resilience, standing at $2,265 at the time of writing, marking a noteworthy 10.14% increase over the past seven days.

The positive price action aligns with prevailing market sentiment, suggesting that the recent sell-offs are unlikely to significantly dent ETH prices. Current market dynamics indicate a rising demand for ETH, reflected in the Accumulation/Distribution (A/D) line, which sits at 10.37 million.

This A/D reading implies a notable buying trend, with limited distribution compared to the accumulation of ETH. While a brief cooling-off period is possible, ETH is anticipated to maintain support above $2,153. A more substantial support level at $2,032 could serve as a defense against bearish pressures. In the near term, ETH is poised to surpass $2,300, as indicated by the On Balance Volume (OBV), which currently stands at 6.50 million, affirming a bullish sentiment.

Investors’ confidence in ETH is further underscored by the Open Interest metric, which registers at 8.28 billion, according to CoinGlass data. This uptick in Open Interest suggests that traders are holding positions in anticipation of potential gains. When considering these metrics alongside price action, it appears that Open Interest supports the ongoing upward trend for ETH.

In a comprehensive assessment, Coin Edition delves into the open positions for ETH, revealing a prevailing optimism among traders who have set ambitious targets, with some eyeing prices as high as $3,500 per coin.