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ETH Movements Hit Peak Levels Since Last August

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ETH Movements Hit Peak Levels Since Last August


On-chain data shows ETH transfers climbing to 2.75M as holders rush to stablecoins and exchanges during sharp drawdown.

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.

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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.

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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.

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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.

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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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Crypto World

BTC Leads Recovery While Altcoin Indicators Hit Cycle Lows

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Cryptocurrencies, Business, Ethereum, Bitcoin Price, Adoption, Markets, Cryptocurrency Exchange, Tokens, Price Analysis, Market Analysis, DeFi, Altcoin Watch

Bitcoin’s (BTC) recent recovery above $71,000 suggests that the price bottom is officially in, and bullish momentum can be seen across the crypto market. TOTAL2, which tracks the market cap of all crypto assets excluding Bitcoin, has held support at its 200-week moving average, but is an altcoin season in the making?

The divergence between Bitcoin’s rally and the muted altcoin price action is beginning to draw attention to altseason indicators, raising the question of whether the broader market may soon follow BTC’s lead.

TOTAL2 tests long-term support just below $1 trillion

The TOTAL2 market cap peaked near $1.7 trillion in October 2025 but currently sits at $970 billion, a drawdown of roughly 43%. The decline accelerated in January after the market cap broke a three-year ascending trendline near $1.15 trillion.

Market attention has now shifted to the higher-timeframe support. On the weekly chart, the TOTAL2 market cap trades close to its 200-week moving average near $900 billion, a level that held during market corrections in September 2024 and April 2025.

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Cryptocurrencies, Business, Ethereum, Bitcoin Price, Adoption, Markets, Cryptocurrency Exchange, Tokens, Price Analysis, Market Analysis, DeFi, Altcoin Watch
Weekly TOTAL2 market cap chart. Source: Cointelegraph/TradingView

The daily chart shows consolidation beneath the former trendline and the $1.1 trillion to $1.25 trillion resistance band, a zone that previously held large liquidity clusters.

The altcoin positioning metrics align with the drop in TOTAL2. CryptoQuant data highlighted that 36.8% of altcoins are trading near their historical lows, excluding Bitcoin, Ether (ETH), and stablecoins.

Cryptocurrencies, Business, Ethereum, Bitcoin Price, Technology, Adoption, Markets, Cryptocurrency Exchange, Price Analysis, Market Analysis, DeFi
Percentage of altcoins near ATL. Source: CryptoQuant

These elevated readings appear when capital concentrates in larger assets. XWIN Research said that spot Bitcoin ETF inflows and the growing number of tokens have intensified competition for liquidity across smaller assets over the past year.

Related: Hyperliquid’s HYPE price will hit $150 by August, predicts Arthur Hayes

Average altcoin performances near cycle lows

Data from CryptoQuant outlined how deeply altcoins have underperformed Bitcoin. The average altcoin trades 44.4% below its 200-day simple moving average (SMA), a level historically seen near bear-phase bottoms.

Cryptocurrencies, Business, Ethereum, Bitcoin Price, Technology, Adoption, Markets, Cryptocurrency Exchange, Price Analysis, Market Analysis, DeFi
Average altcoin and Binance-listed token performance relative to 200D-SMA. Source: CryptoQuant

The exchange data shows similar weakness. Only 4.59% of Binance-listed altcoins trade above their 200-day SMA, confirming a strong Bitcoin-led phase.

The altcoin expansion typically begins with Ether’s (ETH) leadership. The ETH/BTC pair has not established an uptrend and continues to trade inside a descending channel on the weekly chart.

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A move above 0.036 may mark the first break of the channel’s local resistance and signal improving relative strength for ETH. A stronger shift in capital rotation could emerge if the pair reclaims 0.043, a level that previously acted as resistance before the broader decline in 2025.

Cryptocurrencies, Business, Ethereum, Bitcoin Price, Technology, Adoption, Markets, Cryptocurrency Exchange, Price Analysis, Market Analysis, DeFi
ETH/BTC one-week chart. Source: Cointelegraph/TradingView

Until these levels are reclaimed, Bitcoin-led momentum continues to dominate the recovering crypto market.

Market analysts are also debating whether the next altcoin cycle will resemble past rallies. Bitwise Chief Investment Officer Matt Hougan recently said that future altcoin seasons may not lift the entire market equally, arguing that the capital will most likely be concentrated in projects with stronger adoption and real-world applications.

Related: Bitcoin vs gold: ETF flows point to early capital rotation signs