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 price slid from around $3,000 to near $2,000, with activity reaching levels last seen in August 2025, according to data shared by analyst CryptoOnchain. The surge in token movement points to heavy sell-side pressure and forced repositioning, even as other indicators suggest a tightening supply on exchanges. Token Transfers Spike as ETH’s Price Drops CryptoOnchain’s assessment showed Ethereum’s 14-day simple moving average of total tokens transferred climbing from about 1.6 million on January 29 to approximately 2.75 million by February 7. That is the highest reading since August 2025 and came as ETH corrected sharply from the $3,000 area to the low $2,000s. The divergence between falling prices and rising network activity is often associated with panic-driven behavior, where holders rush to move assets during fast drawdowns. CryptoOnchain linked the spike to investors rotating into stablecoins, moving funds onto exchanges for sale, and a wave of liquidations across decentralized finance protocols as collateral values fell. “This significant spike in ERC-20 token transfers during a price crash suggests investors are rushing to exit positions, likely converting volatile assets into stablecoins or moving funds to exchanges for liquidation,” the market observer wrote. The timing also lines up with a broader market sell-off that saw Bitcoin fall from above $80,000 to near $60,000 before rebounding toward $72,000, while Ethereum struggled to hold key support near $2,000. Selling pressure has not been limited to smaller holders, with the likes of Ethereum co-founder Vitalik Buterin selling more than 6,100 ETH over several days last week. Other large holders also reduced exposure to repay loans, adding to short-term pressure during the drop. Exchange Balances Fall Even as Volatility Stays High Despite the recent rush of token movement, several indicators have also pointed to declining ETH...