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.

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 availability on exchanges. According to on-chain detective CoinNiel, Ethereum held on exchanges has fallen to levels last seen in mid-2016. Experts from the Arab Chain platform also added that Binance’s ETH reserves have dropped to about 3.7 million ETH, the lowest since 2024.

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

On the other hand, falling exchange balances suggest fewer coins are readily available for spot selling, and some of the recent transfers may reflect stress-driven repositioning rather than long-term distribution. According to CryptoOnchain, similar spikes in transfer activity during past drawdowns have sometimes occurred near local lows, once forced selling eased.

For now, Ethereum sits between ongoing volatility and shrinking exchange supply, with on-chain data showing fear-driven movement even as longer-term holders continue pulling coins off trading platforms.

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