According to a report shared by CryptoQuant, Ethereum has just experienced its most sustained liquidation cycle since June 2021.
The data shows that forced unwinds were not confined to a single volatility spike, but unfolded over multiple sessions, marking a structural reset in derivatives positioning.
On February 6, 2026, the 7-day Simple Moving Average of long liquidations on Binance climbed to 9,000 ETH, the highest reading in four years. Because the figure represents a rolling weekly average, it reflects persistent pressure rather than a one-day event.
Week-Long Cascade as Price Fell From $3,000 to $2,000
As Ethereum declined from the $3,000 region toward the $2,000 range, long positions were not cleared in a single flush. Instead, traders faced a sequence of consecutive margin calls over several days.
The sustained nature of the liquidation activity suggests that leverage was gradually unwound across the market. Rather than a sudden shock, the process resembled a controlled but relentless compression of speculative positioning.
This pattern typically indicates structural stress rather than isolated volatility.
Exceeding 2022 Bear Market Liquidations
The report notes that the current 7-day liquidation average surpasses levels observed during major capitulation phases of the 2022 bear market. That comparison implies a deeper reset in derivatives exposure than many participants may have anticipated.
High and sustained liquidation metrics often signal that excess leverage has been purged from the system. When liquidations remain elevated over several sessions, it typically reflects widespread forced selling rather than discretionary exit.
Structural Interpretation
The prolonged spike in liquidation averages confirms that Ethereum has undergone a meaningful leverage cleanse. Historically, extended liquidation cycles can precede stabilization phases, as weaker hands are progressively removed and open interest compresses.
However, liquidation intensity alone does not guarantee immediate reversal. The transition from capitulation to accumulation depends on whether new demand emerges once leverage normalizes.
Structural Takeaway
Ethereum’s 7-day liquidation average reaching 9,000 ETH underscores a market that has endured sustained derivative stress. The scale and duration of the unwind suggest a comprehensive reset of leveraged positioning.
Whether this event marks the final phase of capitulation or simply a midpoint in broader volatility will depend on subsequent spot demand and stabilization above key price zones rather than liquidation metrics alone.
