Ethereum Transfer Spike Hits 1.17 Million, ETH Price Faces $1,770 Risk

Ethereum is facing a tense moment as on-chain activity and price action send the same warning: the market may be entering a high-risk zone.

A new report from CryptoQuant on February 5 points to a sharp spike in Ethereum’s transfer count, a metric that has historically appeared near major market peaks. 

At the same time, technical data from TradingView shows ETH breaking down through key support levels, confirming heavy bearish pressure.

Transfer Count Spike Raises Red Flags

CryptoQuant pointed out that Ethereum’s total number of transfers, using a 14-day moving average, saw a huge spike to 1.17 million on January 29, 2026. Such a huge spike in activity is not very common and normally occurs at significant points in Ethereum’s history.

For instance, in January 2018, there was a huge spike in the number of transfers right at the peak of the cycle, just before Ethereum plunged into a deep bear market. This pattern was repeated on May 19, 2021, when there was a huge spike in the number of transfers during a crash and correction.

Source: CryptoQuant

High activity may reflect adoption, but according to CryptoQuant, sharp peaks near price highs may indicate that the market is overheating. Large movements of funds may represent the movement of long-term holders, potential exchanges, or taking profits.

Such points may also be the most volatile, with sharp movements before the market reverses. At the moment, the current peak appears to be similar to those of 2018 and 2021, so traders are advised to be cautious since the probability of a price drop increases if history repeats itself.

Also Read: Ethereum Risks Deeper Losses if Bears Break Key $2,800 Support

Ethereum Breaks Down Below Key Levels

Analysis from TradingView on Feb 5 shows that ETH is facing more problems. Ethereum is currently trading at $1,875 after falling more than 12% in a single day.

This fall has caused ETH to go significantly below the 20, 50, 100, and 200-day moving averages, which are currently lined up bearishly between $2,630 and $3,230.

Source: TradingView

This resistance level is formed due to the overhead cluster, which means that a bounce might face immediate selling pressure rather than a possible recovery.

Fibonacci expansion indicates that ETH is headed towards the 2.618 extension level of $1,770. A break below this level will increase the targets towards $1,150 and even $765.

Momentum Still Favors Sellers

The momentum indicators are still very bearish. The RSI is at about 19, which indicates that ETH is oversold, but being oversold does not necessarily mean that there will be a rebound in a strong downtrend.

There is not yet a bullish divergence, so a further drop is still possible. The MACD is increasing its bearish momentum with larger and larger negative histogram bars.

Source: TradingView

Also Read: Ethereum (ETH) Faces Brutal 20% Crash Warning