Published & Updated: February 3, 2026 | Tapbit Ethereum & DeFi Desk
Ethereum collapsed to a 2026 low of $2,110 on Tuesday, February 3 — a brutal 28% decline over the prior seven days and roughly 57% below its August 2025 cycle peak near $4,900. The sell-off was accompanied by persistently negative perpetual futures funding rates (longs paying shorts), over $2 billion in long liquidations during the leg lower, and $447 million in net outflows from US spot Ethereum ETFs across just five trading sessions.
With the Fear & Greed Index pinned in the single digits (14–19 range) and ETH/BTC ratio making fresh cycle lows, the market is exhibiting classic capitulation behavior. This article examines the primary drivers behind the plunge, technical structure, contrarian signals, and actionable trading frameworks for navigating the current phase.
Ethereum Price Action – February 3, 2026 Timeline
| Time (UTC) | ETH Price Range | Change | Key Event / Volume Note |
|---|---|---|---|
| Feb 3, 00:00–06:00 Asia | $2,380 → $2,210 | –7.1% | Weekend overhang + thin liquidity breakdown below $2,300 |
| 06:00–12:00 Asia/EU overlap | $2,210 → $2,110 (low) | –4.5% | Heavy long liquidations; funding rates deeply negative |
| 12:00–18:00 EU/US open | $2,110 → $2,280 | +8.1% | Dip-buyers defend $2,100–$2,150 zone; short covering |
| Current (late EU session) | ~$2,260–$2,320 | Stable | Range-bound ahead of US open |
The $2,110 print marked the lowest level since mid-December 2025 and triggered one of the most violent single-day liquidation spikes of the year.
Primary Drivers of Ethereum’s 28% Crash
The move lower resulted from a convergence of macro, institutional and technical pressures:
- Broad risk-off contagion
Nasdaq weakness and renewed macro caution (Fed pause, tariff threats) dragged high-beta assets lower. ETH — with higher leverage exposure than BTC — amplified the decline. - Negative funding rates & leverage flush
Perpetual funding flipped deeply negative (longs paying shorts at –0.003%+ annualized), reflecting dominant bearish positioning. Over $2 billion in long liquidations cascaded during the Asia/US overlap. - US spot ETH ETF outflows
$447 million net redemptions over five sessions — led by BlackRock’s ETHA ($264 million exit) — removed direct spot bid and added selling pressure. Total AUM now ~$15.86 billion (4.9% of ETH supply). - Technical breakdown confirmation
ETH lost $2,550–$2,600 support → triggered algorithmic selling. ETH/BTC ratio hit fresh cycle lows, underscoring altcoin underperformance. - DEX volume collapse
January DEX volumes fell 47% to $52.8 billion, sharply reducing ETH burn rate and removing one source of supply absorption.
Negative Funding Rates: Bearish Signal or Contrarian Buy?
Funding rates turning negative means shorts are paying longs to hold positions — a rare and powerful bearish signal indicating:
- Long demand has evaporated
- Short interest is dominant
- Market expects further downside
However, history shows deeply negative funding often precedes short squeezes when price finds a floor — especially when combined with oversold RSI (~26–42), extreme fear readings (14–19), and long-term holder accumulation. The current setup is a classic contrarian buy zone for patient capital, provided macro catalysts (Fed speakers, jobs data) do not worsen.
ETF Outflows: $447M Hammer on ETH Price
US spot Ethereum ETFs recorded $447 million in net outflows across five trading sessions, with BlackRock’s ETHA seeing the largest single withdrawal ($264 million). Total AUM now stands at approximately $15.86 billion — roughly 4.9% of ETH’s circulating supply — meaning ETF flows have a direct and outsized impact on spot price.
Cumulative inflows since launch remain positive ($11.97 billion), but the recent reversal has removed a key stabilizing bid and added persistent selling pressure — a divergence from Bitcoin ETFs, which have seen more resilient inflows during the same period.
Technical Levels & Sentiment Signals (ETH/USD – Feb 3)
Current ~$2,260–$2,320 (partial bounce from $2,110 low)
- Immediate Support: $2,200–$2,240 (intraday capitulation zone)
- Critical Support: $2,100–$2,150 (psychological round + prior swing low)
- Next Major Support: $1,950–$2,000 (0.618 Fib retracement from 2025 high)
- Immediate Resistance: $2,400–$2,420 (prior breakdown level)
- Medium-Term Resistance: $2,600–$2,650 (50-day EMA cluster)
- RSI (daily): ~26–42 → deeply oversold, historically strong reversal zone
- Fear & Greed Index: 14–19 → extreme capitulation territory
Trading Strategies for the Ethereum Crash Phase
- Short-term bearish (fade rallies)
Sell rallies into $2,400–$2,600 resistance if funding remains negative; target $2,100–$2,300 on continuation. Use perps with tight stops above $2,650. - Contrarian long (buy capitulation)
Enter staged spot buys or low-leverage longs at $2,100–$2,300 if RSI <30, funding bottoms, and ETF outflows slow. Target $2,685–$2,800 on short squeeze (10–20% rebound). - Range-bound grid trading
Deploy grid bots on MEXC perps in $2,100–$2,500 range; collect funding when negative. - Risk management
Limit leverage <5×; cap position size at 1–2% of portfolio; use isolated margin; trail stops below recent lows.
FAQs – Ethereum Crash February 2026
Why did Ethereum drop to $2,110 on February 3?
Risk-off contagion from Nasdaq weakness, negative funding rates (longs paying shorts), $447M ETH ETF outflows, and leverage flush (>$2B liquidated) drove the move lower.
Are negative funding rates a buy signal for ETH?
Contrarian yes — deeply negative rates often precede short squeezes when price finds a floor, especially combined with oversold RSI and extreme fear readings.
What level could Ethereum rebound to short-term?
If $2,100–$2,300 holds and outflows slow, $2,685–$2,800 is realistic short-term relief target (10–20% bounce). Longer-term recovery to $3,000+ requires macro stabilization.
Should I buy Ethereum after the crash?
$2,100–$2,300 offers favorable risk/reward for staged entries if conviction is high. Wait for $2,400–$2,500 reclaim + volume confirmation before aggressive longs. Below $2,100 risks deeper test toward $1,950–$2,000.
Conclusion & Near-Term Outlook for Ethereum
Ethereum’s collapse to $2,110 on February 3, 2026 — a 28% weekly drop — reflects classic risk-off deleveraging amplified by negative funding rates, heavy long liquidations, and $447 million in US spot ETF outflows. While short-term pressure remains intense, the combination of deeply oversold technicals (RSI ~26–42), extreme fear readings (14–19), and continued long-term holder accumulation closely resembles previous capitulation phases that preceded powerful recoveries.
Tapbit offers traders the cleanest execution during fear phases: 0% maker fees on ETH/USDT spot & perpetuals, deep liquidity, up to 125x leverage (use conservatively), staking/yield options, and instant fiat ramps. Monitor $2,100–$2,300 support hold, ETF flow reversal, February jobs data (Feb 7), Fed speakers, and DEX volume recovery — capitulation extremes have historically offered the best asymmetric entries of the cycle.
Trade Ethereum volatility & capitulation zones on Tapbit:
Disclaimer: Cryptocurrency trading involves significant risk of loss. Prices are highly volatile and can change rapidly. ETF flows, funding rates and technical patterns do not guarantee future results. This article is for informational purposes only and does not constitute investment advice. Always conduct your own research (DYOR) and never invest more than you can afford to lose completely.
