On-chain information exhibits ETH transfers climbing to 2.75M as holders rush to stablecoins and exchanges throughout sharp drawdown.
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, based on information shared by analyst CryptoOnchain.
The surge in token motion factors to heavy sell-side stress and compelled repositioning, at the same time as different indicators counsel a tightening provide on exchanges.
Token Transfers Spike as ETH’s Worth Drops
CryptoOnchain’s evaluation shown Ethereum’s 14-day easy transferring common of whole tokens transferred climbing from about 1.6 million on January 29 to roughly 2.75 million by February 7. That’s the highest 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 commonly 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 important spike in ERC-20 token transfers throughout a value crash suggests traders are dashing to exit positions, seemingly changing unstable property into stablecoins or transferring funds to exchanges for liquidation,” the market observer wrote.
The timing additionally strains 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.
Promoting stress has not been restricted to smaller holders, with the likes of Ethereum co-founder Vitalik Buterin promoting greater than 6,100 ETH over a number of days final week. Different massive holders additionally diminished publicity to repay loans, including to short-term stress throughout the drop.
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Alternate Balances Fall Whilst Volatility Stays Excessive
Regardless of the latest rush of token motion, a number of indicators have additionally pointed to declining ETH availability on exchanges. Based on on-chain detective CoinNiel, Ethereum held on exchanges has fallen to ranges final seen in mid-2016. Specialists 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 beneath $1,900 on February 5, based on information from CoinGecko, earlier than recovering to its present stage.
However, falling trade balances counsel fewer cash are available for spot promoting, and among the latest transfers could replicate stress-driven repositioning slightly than long-term distribution. Based on CryptoOnchain, comparable spikes in switch exercise throughout previous drawdowns have typically occurred close to native lows, as soon as compelled promoting eased.
For now, Ethereum sits between ongoing volatility and shrinking trade provide, with on-chain information exhibiting fear-driven motion at the same time as longer-term holders proceed pulling cash off buying and selling platforms.
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