- Lido Finance’s Ethereum buffer is likely to be exhausted by 94.5% once Celsius’ withdrawal is processed.
- Celsius related withdrawals of Ethereum are likely to be liquidated.
- The withdrawal is expected to increase selling pressure on ETH, hitting the asset’s price.
Lido Finance, a liquid-staking solution for Ethereum, has an ETH buffer of 452,710 Ether for withdrawals, of which 94.5% has been claimed by bankrupt crypto lender Celsius. The impact of this ETH withdrawal remains to be seen, but an increase in selling pressure on the altcoin is expected.
Also read: Ethereum researcher proposes MEV burn to protect ETH blockchain from manipulation
Celsius claims 94.5% of Lido Finance’s Ethereum withdrawal buffer
As of May 16, Lido Finance’s Ethereum withdrawal buffer consists of 452,710 ETH, 94.5% of which has been claimed by Celsius, according to data from Dune analytics. This is worth around $782 million at current prices.
Lido Finance ETH buffer and withdrawal statistics from Dune analytics
Of the 442,038 ETH lined up for withdrawal, Celsius has claimed 428,083, a whopping 94.5% of Lido Finance’s buffer.
The liquid staking solution recently released its version two on the Ethereum mainnet, which enables users to process withdrawals within three days. The upgrade means that the bankrupt crypto lender’s Ether withdrawal could be processed this week.
How the withdrawal could influence Ethereum price
Ethereum battled intense selling pressure in the first week of May, when an increase in supply on exchanges drove ETH price below the $1,800 level.
The supply on exchanges, represented by a black line in the chart below from crypto tracker Santiment, is therefore key to traders. A spike in this metric could negatively influence the asset’s price.
%20[12.09.37,%2017%20May,%202023]-638199070223029684.png)
Ethereum supply on exchanges vs. price
In the event of a pullback in Ethereum, ETH price could nosedive to $1,687, a level that has acted as a support since March. Before this, Ethereum price could find support at the 200-day Exponential Moving Average (EMA) at $1,696.
ETH/USD one-day price chart
In an upside scenario, Ethereum price could break past resistance at the 10-day and 50-day EMAs at $1,828 and $1,844, respectively, invalidating the bearish thesis for the altcoin.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.