CryptoQuant analysts predict the capitulation of the cryptocurrency market amid sharp online activity

CryptoQuant analysts have detected online dynamics in the Ethereum network that may indicate a phase of market surrender. Amid a drop in the price of ETH from around $ 3,000 to around $ 2,000, activity on the network has increased sharply, indicating massive forced or defensive transactions.

According to the data, the 14-day simple moving average of the number of tokens transferred on the network rose from 1.6 million transactions on January 29 to 2.75 million as of February 7. This is the highest level of the indicator since August 2025 and an extreme value in a short period of time, indicating a large-scale change in token holders under strong price pressure.

Analysts interpret the surge as a sign of panic selling and capital rotation. The growth of ERC-20 token transfers during a price drop usually means that investors are exiting risky positions, converting assets into stablecoins, transferring funds to exchanges for liquidation, or switching to less volatile instruments.

Historically, such peaks in the transfer rate in a bear market have often coincided with capitulation phases, when much of the pressure from sellers is realized in a short time. Since the metric covers all tokens, part of the activity could be formed by liquidations, collateral adjustments, and forced transactions in DeFi protocols that are automatically activated when prices fall.

The key feature of the current situation, according to CryptoQuant, is the intensity of the process. The surge in transfers happened quickly and reached levels not seen in several months. In previous cycles, such «explosive» online activity during downturns more often signaled the approaching depletion of sales rather than the beginning of a protracted decline.