Coin Edition -
- FTX transferred 3,134 ETH into Coinbase (NASDAQ:COIN), while Celsius moved 7,500ETH into an unknown address.
- ETH’s accumulation has been increasing, indicating strength to resist selling pressure.
- If Open Interest continues its uptick alongside ETH, the altcoin price may soon reach $2,300.
Crypto lending service Celsius and defunct exchange FTX have been involved in different Ethereum (ETH) transactions which could affect the price of the altcoin. According to Lookonchain, Celsius transferred 7,500 ETH to an unknown address and suggested it may be deposited to exchanges.
FTX, on the other hand, sent 3,143 ETH to Coinbase in a bid to sell. Celsius’ decision to sell its ETH holdings could be traced back to July. It was at that time that the troubled firm got the go-ahead from a U.S. Bankruptcy Court to sell its assets to pay back some of its creditors.
Both #FTX and #Celsius transferred $ETH again today.#FTX deposited 3,143 $ETH($7.2M) to #Coinbase 10 hrs ago.https://t.co/1qZ967Agee#Celsius transferred 7,500 $ETH($17.2M) to address"0xc450" 7 hrs ago and may deposit to exchanges.https://t.co/D3EybFlGUh pic.twitter.com/LAiIVTafAc— Lookonchain (@lookonchain) December 6, 2023
Like Celsius, FTX also got approval to liquidate its assets. Although FTX has sold other cryptocurrencies like Bitcoin (BTC) and Solana (SOL), it had a $50 million limit to how much it could sell per week.
So, the impact on the broader market has been minimal. Nonetheless, ETH’s price action has been impressive recently. At press time, the value of the altcoin was $2,265, indicating a 10.14% rise in the last seven days.
Furthermore, the coin’s movement was in tune with the broader market direction. Considering the current market sentiment, it is unlikely for the sell-offs to plunge the ETH price. At the time of writing, demand for ETH has been rising such that the Accumulation/Distribution (A/D) line was 10.37 million.
Numerous Support Levels to Save ETH
The A/D reading here implies that there has been less distribution compared to how ETH has been bought. While there could be a cooling period, ETH may not fall below $2,153 support. If selling pressure is intense, then ETH may drop below the aforementioned price.
But the support at $2,032 could ward off bears. In the meantime, ETH is projected to cross $2,300, according to indications from the On Balance Volume (OBV). As of this writing, the OBV was 6.50 million, suggesting that the crowd sentiment was bullish.
ETH/USD 4-Hour Chart (Source: TradingView)
The OBV reading implies that investors are not worried about not selling. It also means many are ready to buy on rising prices. A look at ETH’s Open Interest showed that there was an increase in liquidity allocated to contracts connected to the altcoin.
At press time, the Open Interest was 8.28 billion, CoinGlass data revealed. This increase implies that traders have refrained from closing their positions in anticipation of gains. When placed alongside the price action, the Open Interest might back the ETH uptrend.
Ethereum (ETH) Open Interest (Source: CoinGlass)
Coin Edition also evaluated the ETH open positions. According to our findings, traders are very optimistic about the ETH price action, and targeting as high as $3,500 per coin.
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