Panic Selling Grips Ethereum: ETH Movements Hit Peak Levels Since Last August
Ethereum (ETH) has seen a notable rise in on-chain token transfers this week as its value slid from round $3,000 to close $2,000, with exercise reaching ranges final seen in August 2025, in keeping with knowledge shared by analyst CryptoOnchain.
The surge in token motion factors to heavy sell-side strain and compelled repositioning, whilst different indicators recommend a tightening provide on exchanges.
Token Transfers Spike as ETH’s Price Drops
CryptoOnchain’s evaluation showed Ethereum’s 14-day easy transferring common of complete tokens transferred climbing from about 1.6 million on January 29 to roughly 2.75 million by February 7. That is the best studying since August 2025 and got here as ETH corrected sharply from the $3,000 space to the low $2,000s.
The divergence between falling costs and rising community exercise is usually related to panic-driven conduct, the place holders rush to maneuver property throughout quick drawdowns.
CryptoOnchain linked the spike to traders rotating into stablecoins, transferring funds onto exchanges on the market, and a wave of liquidations throughout decentralized finance protocols as collateral values fell.
“This vital spike in ERC-20 token transfers throughout a value crash suggests traders are speeding to exit positions, probably changing unstable property into stablecoins or transferring funds to exchanges for liquidation,” the market observer wrote.
The timing additionally traces up with a broader market sell-off that noticed Bitcoin fall from above $80,000 to close $60,000 earlier than rebounding towards $72,000, whereas Ethereum struggled to carry key assist close to $2,000.
Selling strain has not been restricted to smaller holders, with the likes of Ethereum co-founder Vitalik Buterin selling greater than 6,100 ETH over a number of days final week. Other massive holders additionally diminished publicity to repay loans, including to short-term strain in the course of the drop.
Exchange Balances Fall Even as Volatility Stays High
Despite the latest rush of token motion, a number of indicators have additionally pointed to declining ETH availability on exchanges. According to on-chain detective CoinNiel, Ethereum held on exchanges has fallen to ranges final seen in mid-2016. Experts from the Arab Chain platform additionally added that Binance’s ETH reserves have dropped to about 3.7 million ETH, the bottom since 2024.
The scenario has created a combined image. On one hand, ETH’s value motion stays weak, with the asset presently buying and selling round $2,040, down about 3% over the previous 24 hours and practically 11% within the final seven days. The token briefly dipped under $1,900 on February 5, per knowledge from CoinGecko, earlier than recovering to its present degree.
On the opposite hand, falling alternate balances recommend fewer cash are available for spot promoting, and a number of the latest transfers might mirror stress-driven repositioning reasonably than long-term distribution. According to CryptoOnchain, comparable spikes in switch exercise throughout previous drawdowns have typically occurred close to native lows, as soon as pressured promoting eased.
For now, Ethereum sits between ongoing volatility and shrinking alternate provide, with on-chain knowledge exhibiting fear-driven motion whilst longer-term holders proceed pulling cash off buying and selling platforms.
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