Why did ETHUSD drop 13.08% on February 1, 2026?

A $220 million ETH-USD position on Hyperliquid was forcibly liquidated due to overleveraged exposure and thin liquidity. This triggered a cascade of margin calls across exchanges, with $2.5 billion in total crypto liquidations in 24 hours. Long positions accounted for $2.42 billion of losses.

What is the ETHUSD technical support level after the liquidation?

The primary support level is $2,771.08 (Bollinger lower band), followed by $2,238.74 (day low). The 50-day moving average at $3,050.78 represents key resistance. RSI at 49.07 indicates neutral conditions with potential for stabilization.

What is the ETHUSD price forecast for 2026?

Monthly target: $2,536.09 (+3.55%). Quarterly target: $2,787.04 (+13.78%). Yearly target: $3,636.09 (+48.48%). These forecasts assume liquidation pressure clears and market structure improves over time.

How much trading volume did ETHUSD see during the liquidation?

ETHUSD volume reached $578.1 million on February 1, representing 1.70x the 30-day average of $312.8 million. This elevated volume reflects forced liquidations and panic selling rather than organic market activity.

Is ETHUSD oversold after the -13.08% decline?

The RSI at 49.07 is neutral, not oversold. However, price near the Bollinger lower band at $2,771.08 and MACD showing early bullish divergence suggest potential for mean-reversion buying if support holds.

Crypto Insights

ETHUSD Ethereum Liquidation Cascade: Why -13.08% Decline Triggered $1.15B Wipeout

ByHuzaifa Zahoor February 2, 2026February 2, 2026

Ethereum USD (ETHUSD) experienced a sharp decline of -13.08% on February 1, 2026, as massive liquidations swept through crypto derivatives markets. A single trader lost $220 million on Hyperliquid when an ETH-USD position worth $222.65 million was forcibly closed. This event triggered a broader market cascade, with total crypto liquidations exceeding $2.5 billion in 24 hours. The ETHUSD price fell from $2,817.79 to $2,449.36, marking one of the most severe single-day declines in recent months. Understanding what drove this liquidation event and where ETHUSD technical levels stand is critical for traders monitoring this volatile market.