A few thousand ETH sold in tight windows pushed price down 5.7% in hours.
Exchange inflows and thin order books explain why the drop was fast.

On Feb 23, blockchain trackers showed 1,869 ETH sold within 48 hours, about $3.67M at market prices. This came on top of roughly 8,800 ETH sold in February, valued at about $18M. 

Earlier, on Jan 30, a planned allocation of up to 16,384 ETH was disclosed for funding ecosystem work. When these transfers hit exchanges, ETH fell 5.7% from $1,988 to $1,875 in a short span, while exchange deposits jumped to their highest level since November 2025.

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What Happened On-Chain

Blockchain data showed 1,869 ETH moved and sold over two days. At current prices, that equals about $3.67M. Over the full month of February, sales linked to known addresses totaled roughly 8,800 ETH, or about $18M.

The earlier Jan 30 allocation of up to 16,384 ETH signaled that some level of selling would occur. Still, timing plays a big role in price reaction. When thousands of ETH enter the market within a short period, buyers must absorb that supply immediately. If demand does not match the flow, price adjusts lower.

The key issue is concentration, not scale relative to total ETH supply. Even if the percentage of overall supply is small, tight execution windows increase short-term pressure.

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Why ETH Price Dropped 5.7% So Quickly

ETH slid 5.7% from $1,988 to $1,875 during the sales window. Volume surged at the same time. Exchange deposit data showed a clear spike, reaching levels last seen in November 2025.

Here is how the chain reaction works. When tokens move to exchanges, traders assume selling may follow. Some exit early. Others trigger stop losses. Leveraged traders get liquidated if price falls through key levels. That forced selling adds more supply into the market.

Reports during the sharpest minutes showed liquidations reaching hundreds of millions of dollars across derivatives platforms. That cascade accelerates moves.

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How The ETH Was Sold

On-chain data showed smaller batches rather than one large block trade. There were signs of decentralized swaps and stablecoin conversions, including into GHO. There were also withdrawals from lending platforms such as Aave, which suggests position adjustments before selling.

This approach reduces the footprint of each individual trade. However, when many smaller trades cluster together, total impact can still compress liquidity. Market participants focus less on method and more on flow direction. If tokens move toward exchanges, traders price in selling risk.

This shows that even careful execution cannot fully prevent short-term volatility if the market environment is already fragile.

What Investors Should Track Now

Three data points will shape what happens next.

• Exchange inflows. If large deposits continue, selling pressure could persist. If inflows slow, supply pressure eases.
• Wallet activity tied to the February allocation. Acceleration in transfers would suggest continued distribution. A pause would reduce immediate pressure.
• Order-book depth. When bid size increases at key levels, price stabilizes more easily. Thin books, on the other hand, exaggerate moves.

Each scenario will, however, depend on flow. If inflows fade and buyers step in, ETH can recover quickly. If fresh supply keeps entering exchanges and leverage builds up again, volatility could return.

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Conclusion

February’s 8,800 ETH in sales created a short-term supply shock that showed up clearly in price, volume, and exchange data. The 5.7% drop was a mechanical reaction to concentrated selling and thin liquidity, not a mystery event. 

In crypto markets, flows move first and narratives follow. Keep track of wallet transfers and exchange deposits to help you better understand what happens next.

Should You Invest In ETH Now?

Before you invest in ETH, you’re going to want to read our next premium crypto alert which will be published in the coming days. We will reveal key crypto assets to consider in 2026 with explosive potential.

Read our latest premium crypto alert here: Will Feb 26th And $66k Register An Harmonic Setup? (Feb 22nd)

Since 2017, InvestingHaven’s blockchain research service has been guiding investors through both bull runs and crypto winters.