Panic Selling Grips Ethereum: ETH Moves Hit Peak Levels Since Last August

On-chain data shows ETH transfers soar to 2.75 million as holders rush to stablecoins and exchanges amid a sharp decline.

Ethereum (ETH) has seen a notable increase in on-chain token transfers this week, as its price fell from around $3,000 to nearly $2,000, with activity reaching levels last seen in August 2025, according to data shared by analyst CryptoOnchain.

The surge in the token movement points to heavy sell-side pressure and forced repositioning, even as other indicators point to tighter supply on exchanges.

Token transfers rise as the price of ETH falls

CryptoOnchain review showed The 14-day simple moving average of total tokens transferred in Ethereum increased from approximately 1.6 million on January 29 to approximately 2.75 million on February 7. That’s the highest since August 2025 and came as ETH corrected sharply from the $3,000 area to the low $2,000s.

The difference between falling prices and rising network activity is often associated with panic-driven behavior, where holders rush to move assets during rapid withdrawals.

CryptoOnchain linked the spike to investors moving into stablecoins, moving funds to exchanges for sale, and a wave of liquidations through decentralized finance protocols as collateral values ​​fell.

“This significant spike in ERC-20 token transfers during a price crash suggests that investors are rushing to exit their positions, likely converting volatile assets into stablecoins or moving funds to exchanges for liquidation,” the market watcher wrote.

The timing also aligns with a broader market sell-off, with Bitcoin falling from above $80,000 to near $60,000 before recovering towards $72,000, while Ethereum struggled to hold key support around $2,000.

The selling pressure wasn’t limited to smaller holders, with Ethereum co-founder Vitalik Buterin selling more than 6,100 ETH over several days last week. Other major investors also reduced exposure to redemption credits, adding to short-term pressure during the decline.

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Exchange rate balances are falling, even though volatility remains high

Despite the recent wave of token movements, several indicators also point to declining availability of ETH on exchanges. According to on-chain detective CoinNiel, Ethereum has held a hold on exchanges fallen to the level last observed in mid-2016. Experts from the Arab Chain platform also added that Binance’s ETH reserves have decreased to around 3.7 million ETH, the lowest since 2024.

The situation has created a mixed picture. On the one hand, ETH’s price action remains weak, with the asset currently trading around $2,040, down around 3% in the last 24 hours and almost 11% in the last seven days. The token briefly fell below $1,900 on February 5, according to data from CoinGecko, before recovering to current levels.

On the other hand, declining currency balances indicate that there are fewer coins readily available for spot sale, and that some of the recent transfers are a result of stress-induced repositioning rather than long-term distribution. According to CryptoOnchain, similar spikes in transfer activity during previous drawdowns have sometimes occurred near local lows after foreclosures had subsided.

For now, Ethereum finds itself caught between continued volatility and shrinking exchange supply, with on-chain data showing a fear-driven move even as longer-term holders continue to pull coins from trading platforms.