Ethereum tumbles after $466M liquidations as $2.5K support breaks

Published: 2026-02-06 21:26:22 |

Ethereum suffered a sharp sell-off on February 5, 2026, triggering $466.4 million in liquidations (about $382 million long). ETH fell roughly 14.96% that day, sliding from $2,148 to $1,826 and breaking key demand zones around $2.5K and $2.1K. Market sentiment plunged into extreme fear (Fear & Greed Index at 11). On-chain and technical signals showed heavy bearish pressure: daily RSI reached deeply oversold levels (around 18.7) and OBV posted fresh lows, while ETH/BTC hit a three-year low, underlining altcoin underperformance. Liquidation heatmaps show large liquidity pockets near $2K were taken out; potential magnet zones lower include $1,500, while short-term bounce targets sit near $2.1K–$2.4K. Analysts warn that rallies to those zones may be met by selling, and a further drop toward $1.5K remains possible. Traders should treat bounces cautiously and plan for potential bearish re-tests of $2.1K–$2.4K.

Bearish

The liquidation event and technical breakdown point to a bearish outlook. $466.4M in liquidations—predominantly long—indicates forced deleveraging and capitulation, which amplifies downward momentum. Key support levels at $2.5K and $2.1K were breached; RSI and OBV show heavy selling pressure, and ETH/BTC at a three-year low signals relative underperformance versus BTC. Historical parallels: large long squeezes (e.g., 2021/2022 crypto drawdowns) produced extended downside and volatile, short-lived recoveries that often failed at prior support-turned-resistance. Short-term: expect possible bounces toward $2.1K–$2.4K that are likely to attract selling and could serve as lower-timeframe short entries. Medium-to-long-term: if ETH fails to reclaim the $2.4K–$2.5K region and liquidity to the south remains thin, downside targets around $1.5K gain probability. Traders should manage position sizing, use stop-losses, and be cautious about catching falling knives; derivatives traders should monitor open interest and liquidation heatmaps for follow-up squeezes.