- Ethereum funding charges hit -0.028% on Binance, matching excessive ranges final seen throughout the FTX collapse in 2022.
- Over $1.1 billion in ETH positions liquidated as worth crashes beneath $2,500 help to check the $2,200 zone.
- Geopolitical tensions between the US and Iran set off $470B crypto market loss over three days amid selloff.
Ethereum has entered a crucial stress zone. Funding charges on main exchanges have plummeted to ranges not seen because the FTX collapse.
The decline comes as geopolitical tensions between america and Iran set off a broad crypto market selloff. Complete market capitalization shed almost $300 billion in a single session. Cumulative losses over three days now exceed $470 billion.
Mass Liquidations Push ETH Into Adverse Funding Territory
The market chaos triggered over $2.5 billion in liquidations throughout crypto derivatives. Ethereum bore a good portion of the injury.
In keeping with knowledge shared by analyst Darkfost, roughly $1.1 billion in ETH positions have been liquidated. This pressured promoting created a pointy disconnect between perpetual and spot markets.
🔴 ETH Funding Charges hit FTX-era excessive degree.
The crypto market pushed additional decrease right now, primarily pushed by rising geopolitical tensions between america and Iran.
This renewed wave of threat aversion triggered one other spherical of broad selloffs throughout threat property, and… pic.twitter.com/UpmKIXTOch— Darkfost (@Darkfost_Coc) January 31, 2026
Binance recorded ETH funding charges at -0.028%, an excessive detrimental studying. Such ranges usually seem solely throughout extreme market misery. The final comparable occasion occurred throughout the FTX collapse in late 2022.
Aggregated funding charges throughout exchanges fell even additional to -0.078%.
ETH Worth Assessments Vital Help Zones
Ethereum misplaced its $2,500 help degree earlier than experiencing a flash crash. The asset now hovers above $2,200, a zone that served as accumulation territory in Q2 2025.
Analyst Ted warns that dropping this degree may ship ETH towards $1,700-$1,800. Conversely, reclaiming $2,500 would possibly set off a ten%-15% reduction rally.
$ETH misplaced its $2,500 help degree after which had a flash crash.
Now, Ethereum is hovering above the $2,200 help zone which was the buildup zone in Q2 2025.
If ETH loses this, a dump in the direction of $1,700-$1,800 will occur.
And if ETH reclaims the $2,500 degree, a ten%-15%… pic.twitter.com/ScuZ8nsbtG
— Ted (@TedPillows) February 1, 2026
Present worth knowledge from CoinGecko reveals ETH buying and selling at $2,391.12. The 24-hour buying and selling quantity stands at $52.6 billion. This marks a 9.69% decline previously day and an 18.28% drop over seven days.
Perpetual Markets Present Excessive Pessimism
Adverse funding charges point out shorts are paying longs to take care of positions. The present readings mirror extreme bearish sentiment in derivatives markets.
When perpetual costs fall beneath spot costs, the funding mechanism adjusts to revive steadiness. The severity of those changes reveals the depth of promoting strain.
Darkfost notes that whereas excessive negativity typically precedes bottoms, this alone doesn’t affirm a reversal. The analyst emphasizes that ongoing geopolitical tensions and constrained liquidity warrant continued warning.
Market Stays in Cleaning Part
The crypto market continues to purge overleveraged positions. Danger aversion stemming from Center East tensions has amplified the correction.
Ethereum’s spinoff markets are bearing the brunt of this deleveraging occasion. The mixture of mass liquidations and deeply detrimental funding charges indicators a market underneath important stress.
Whether or not this represents capitulation or additional draw back stays unsure. Historic parallels to the FTX disaster recommend excessive warning is justified.
The market has not but entered a rebuilding part. Till geopolitical dangers subside and liquidity improves, volatility will possible persist throughout crypto property.