The Ethereum market has recently experienced a prolonged period of significant distress, representing the most sustained liquidation event since June 2021.

On February 6, 2026, data from CryptoQuant indicated that the 7-day Simple Moving Average (SMA) of Long Liquidations on Binance peaked at 9,000 ETH. It is important to highlight that because this is a 7-day average, the data reflects not an isolated flash crash, but rather a persistent, multi-day cascade of forced liquidations.

Key Observations:

Sustained Pressure: As Ethereum's price declined from the $3,000 level to the $2,000 range, long positions were not eliminated in a single event. Instead, traders endured a week-long sequence of ongoing margin calls.

Historical Context: This degree of sustained liquidation activity exceeds that of the major capitulation events observed during the 2022 bear market. This suggests a comprehensive reset of leverage within the derivatives market.

Implication:

This metric confirms that the market has undergone a substantial clearing of leveraged positions over the past week. Historically, such persistently high liquidation averages can indicate that seller exhaustion may be approaching, as weaker hands have been progressively removed from the market over several consecutive days.

Written by CryptoOnchain