Published & Updated: February 6, 2026 | Tapbit Ethereum & Altcoin Desk
Ethereum (ETH) suffered one of its most violent weekly declines on record, dropping 34.5% to a low of $1,850 on February 6, 2026 — the lowest level since mid-2024 and a ~57% drawdown from the August 2025 cycle peak near $4,900. The crash erased roughly $300–$350 billion from ETH’s market capitalization, pushing it to ~$223 billion at the bottom, while total altcoin losses amplified the pain across the broader ecosystem.
The move was accompanied by massive futures liquidations (Ethereum longs accounting for ~$1–$1.2 billion of the multi-day total), persistent spot ETF outflows, negative funding rates, and a sharp rise in stablecoin inflows as traders fled to safety. This article provides a comprehensive analysis of the February 2026 Ethereum crash: primary catalysts, on-chain & derivatives signals, technical structure, sentiment extremes, historical parallels, and practical positioning strategies for traders navigating the current capitulation phase.
Price Action Timeline – The February 2026 Ethereum Crash
| Date (UTC) | ETH Price Range | Daily Change | Key Trigger / Volume Note |
|---|---|---|---|
| Jan 30 – Feb 1 | $2,800 → $2,500 | –10.7% | Initial macro risk-off + ETF outflows |
| Feb 2–3 | $2,500 → $2,100 | –16% | Leverage flush begins; $1B+ liquidations |
| Feb 4–5 | $2,100 → $1,850 (low) | –11.9% | Capitulation spike; funding rates deeply negative |
| Feb 6 (intraday) | $1,850 → $1,920–$1,950 | +3–5% bounce | Dip-buyers defend; short covering |
The **$1,850** print marked a new 2026 low and triggered one of the most violent single-week liquidation events for Ethereum in recent history.
Primary Drivers of Ethereum’s 34.5% Weekly Crash
The plunge resulted from a perfect storm of macro, institutional, and technical pressures:
- Broad risk-off contagion from equities
Heavy selling in Nasdaq/tech stocks (renewed growth concerns, tariff fears) spilled over into high-beta crypto assets. ETH — with higher volatility than BTC — amplified the move. - Massive futures liquidation cascade
Ethereum accounted for ~$1–$1.2 billion of the multi-day $16B+ total crypto liquidations. Long positions dominated (~80–85%), reflecting late-cycle euphoria being washed out. - Spot ETH ETF outflows
Net redemptions exceeded $447 million over five sessions (BlackRock ETHA leading), removing direct spot bid and adding selling pressure. Total AUM ~$15.86 billion (4.9% of ETH supply). - Macro liquidity squeeze
Fed “higher-for-longer” stance (no early cuts from 3.50–3.75%), stronger dollar, and elevated real yields kept risk appetite suppressed. - Technical breakdown confirmation
ETH lost $2,550–$2,600 support → triggered algorithmic selling and stop cascades. 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 supply absorption.
Technical Levels & Sentiment Indicators (ETH/USD – Feb 6)
Current ~$1,920–$1,950 (partial bounce from $1,850 low)
- Immediate Support: $1,800–$1,850 (intraday capitulation zone)
- Critical Support: $1,700–$1,750 (0.618 Fib retracement from 2025 low to high)
- Next Major Support: $1,500–$1,600 (2024 consolidation zone)
- Immediate Resistance: $2,000–$2,050 (psychological round + prior swing low)
- Medium-Term Resistance: $2,300–$2,400 (50-day EMA cluster)
- RSI (Daily): ~25–35 → deeply oversold, historically strong reversal zone
- Fear & Greed Index (crypto-wide): 14–19 → extreme capitulation territory
Trading Strategies on Tapbit – February 2026
- Sign Up on Tapbit (0% maker fees)
- Deposit USDT via bank transfer / P2P
- Capitulation dip buy: DCA ETH/USDT on pullbacks to $1,800–$1,850 (high-volume exhaustion zone)
- Relief rally play: Long ETH/USDT perpetuals on reclaim of $2,000–$2,050 (20–50x leverage, isolated margin)
- Macro hedge: Long XAU/USDT perpetuals if risk-off continues
- Risk control: Max 1–2% account risk per trade; trailing stops below $1,800
FAQs – Ethereum 34.5% Weekly Crash February 2026
Why did Ethereum drop 34.5% in a single week?
Risk-off contagion from equities, $1–$1.2B ETH futures liquidations, $447M ETF outflows, negative funding rates, macro caution (Fed pause, tariffs), and technical breakdown below $2,550 support.
Is $1,850 the bottom for ETH?
Possible local floor if support holds and ETF flows stabilize. Break below opens risk toward $1,700–$1,750. Sustained hold + volume would signal relief rally potential.
Should I buy Ethereum after the crash?
$1,800–$1,850 offers favorable risk/reward for staged DCA entries if conviction is high. Wait for $2,000–$2,050 reclaim + higher volume before aggressive longs. Below $1,800 risks deeper test toward $1,500–$1,600.
What macro factors are pressuring Ethereum?
Fed “higher-for-longer” messaging, persistent ETF outflows, renewed tariff/geopolitical uncertainty, and leverage flush continue to weigh on high-beta altcoins like ETH.
Conclusion & Near-Term Outlook for Ethereum
Ethereum’s 34.5% weekly plunge to $1,850 on February 6, 2026 — amid $1–$1.2 billion in futures liquidations and $447 million in ETF outflows — reflects a classic risk-off deleveraging event amplified by macro caution, institutional rebalancing, and thin liquidity. While short-term pressure remains intense, the combination of deeply oversold technicals (RSI ~25–35), extreme fear readings (~14–19), and continued long-term holder accumulation closely resembles previous capitulation phases that preceded powerful recoveries.
Tapbit offers traders clean 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. Key levels to monitor: $1,800–$1,850 support hold, $2,000–$2,050 resistance reclaim, ETF flow direction, February jobs report (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.
