ipad mini (retina) goes wild ! can't type, lot of screen movement

My screen seems to be to responsive, even when set on table the screen moves like crazy seems as if even moving a hand over the screen sets it off.

if i try to type a message it'll give a lot of wrong characters. Turning wifi, bluetooth and so off doesn't fix it.

should I erase it completely and if doing so be able to restore the ios (7.1)