Ethereum Endures Historic Liquidation Week: Largest Sustained Liquidation Phase Since 2021
Ethereum continues to commerce under the essential $2,000 stage, reflecting persistent market stress as merchants await a clearer directional catalyst. The incapability to reclaim this psychological threshold has saved sentiment cautious, with volatility elevated and liquidity circumstances nonetheless unsure. While worth motion has stabilized considerably after current declines, the broader construction suggests the market is getting ready for a decisive transfer that might outline Ethereum’s short-term trajectory.
A current CryptoQuant report offers essential context, indicating that the Ethereum market has undergone one in all its most extended durations of stress since mid-2021. According to the information, the 7-day easy transferring common of lengthy liquidations on Binance climbed to roughly 9,000 ETH on February 6, 2026. Because this determine represents a smoothed weekly common fairly than a single-day spike, it indicators sustained stress fairly than a short liquidation cascade.
This sample implies that leveraged lengthy positions have been unwound progressively over a number of days. Pointing to persistent deleveraging fairly than a sudden capitulation occasion. Historically, prolonged liquidation phases can reset market leverage and cut back speculative extra, although additionally they are likely to coincide with fragile sentiment. Whether this course of finally stabilizes Ethereum or results in additional draw back stays depending on liquidity circumstances and broader market demand.
Sustained Liquidations Signal Derivatives Market Reset
The CryptoQuant report additional notes that Ethereum’s decline from the $3,000 area to the $2,000 vary didn’t set off any capitulation occasions. Instead, the market skilled a protracted sequence of margin calls, with leveraged lengthy positions progressively unwound over a number of consecutive days. This sample displays persistent stress within the derivatives market fairly than a short-lived liquidation cascade. Indicating that merchants confronted sustained stress as the worth trended decrease.
From a historic standpoint, the depth and length of this liquidation section seem to exceed these recorded throughout main capitulation durations of the 2022 bear market. Such prolonged liquidation exercise usually indicators a broad deleveraging cycle, the place extreme speculative positioning is systematically cleared. This course of typically reshapes market construction by decreasing leverage-driven volatility and restoring a extra balanced danger setting.
The implication is that Ethereum might have already undergone a major leverage reset in current weeks. Persistently elevated liquidation averages can typically precede vendor exhaustion. Weaker market contributors exit positions, and compelled promoting stress progressively subsides.
The sturdiness of any restoration will seemingly depend upon renewed spot demand and macro liquidity circumstances. Also, investor confidence should return following this prolonged interval of derivatives-driven stress.
Ethereum Tests Long-Term Support: Weekly Structure Weakens
Ethereum’s weekly chart exhibits rising structural stress after the lack of the $2,000 stage, a threshold that beforehand acted as each psychological assist and a key technical pivot. The current breakdown locations ETH under main trend-defining transferring averages, suggesting weakening bullish momentum and a shift towards a extra defensive market setting.
Price motion displays a transparent rejection from the $3,000 area earlier within the cycle. Followed by a sequence of decrease highs that usually characterizes transitional or corrective phases. The newest decline additionally coincides with rising buying and selling quantity, typically related to distribution or leveraged place unwinding fairly than natural accumulation. This dynamic reinforces the notion of ongoing market stress fairly than stabilization.
From a structural standpoint, the subsequent significant assist space seems across the mid-$1,500 to $1,700 zone, the place earlier consolidation and demand emerged in earlier phases. Holding above this vary would assist protect the broader long-term bullish framework, even amid present weak spot. A sustained break under it, nonetheless, might shift sentiment towards a deeper corrective cycle.
Ethereum stays delicate to macro liquidity circumstances, derivatives positioning, and general crypto market sentiment, with restoration depending on renewed spot demand and stabilization above key technical ranges.
Featured picture from ChatGPT, chart from TradingView.com
