Yeliz Akmaca 
Ethereum (ETH) recently dropped from $1,891 to $1,800, liquidating $224 million in leveraged long positions over the past 48 hours. The 14% decline over the last 10 days has put even the largest investors on the defensive. Options and futures data, declining onchain activity, and ongoing outflows from ETH spot ETFs indicate that $1,800 is forming a fragile support level.
ETH Futures and Liquidations
Liquidations in ETH futures reached $224 million, particularly on days when the price fell by 9%. On the options side, trading remained relatively balanced from Monday through Saturday, but dynamics shifted quickly on Tuesday. The put-to-call volume ratio jumped to 2.2x, showing investors suddenly seeking downside protection. While some may have sold puts to bet on a short-term rebound, the broader market appears bracing for further volatility.
The options delta skew was at 18% on Tuesday, meaning puts carried a clear premium. This lopsided demand highlights that hedging is the priority. Confidence remains low, even with ETH sitting 63% below its all-time high.
Onchain Activity and TVL
Ethereum’s total value locked (TVL) dropped to $51 billion, the lowest level since May 2025. With fewer deposits flowing into DApps, network fees have fallen to $13.7 million over the past 30 days, well below the $33 million average seen at the end of 2025. Investors remain concerned that ETH demand may not recover in the short term.
Ethereum co-founder Vitalik Buterin’s recent $7 million worth of ETH sales did little to boost sentiment. In January, he earmarked 16,384 ETH from his personal holdings for privacy-focused technology, open-source hardware, and secure software systems. Still, the optics of the move added pressure to an already fragile market psychology.
ETF Outflows and Institutional Impact
Outflows from ETH ETFs further weighed on investor confidence. U.S.-listed ETH ETFs have seen $405 million in net outflows since February 11, pushing total assets under management down to $12.4 billion. This suggests waning institutional interest. Meanwhile, gold prices surpassed $5,150 during the same period, with gold ETFs attracting $822 million in inflows (week ending February 20, gold.org).
ETH and BTC Correlation
Weak onchain and derivatives data alone do not dictate the market, but whales and market makers appear to be preparing for further downside. ETH remains tightly linked to Bitcoin, with the 20-day correlation staying above 95% for the past three weeks.
The drop to $1,800 has heightened uncertainty among investors. The market is still trying to identify the real drivers behind this crypto bear trend, prompting loss-taking. As long as professional traders remain cautious, the odds of ETH sliding further remain on the table until derivatives metrics stabilize.
Key Takeaways
Price data underscores the market’s fragility. ETH futures liquidations during the recent drop reached $224 million, and onchain activity hit a 12-month low. The put-to-call ratio rose to 2.2x, while delta skew remained at 18%, highlighting the market’s focus on downside protection.
Total value locked (TVL) fell to $51 billion, with network fees hovering at $13.7 million, reflecting stagnant trading activity. Spot ETFs recorded $405 million in outflows, signaling muted institutional interest. Additionally, ETH’s correlation with Bitcoin remains above 95%, with ongoing market uncertainty and cautious traders keeping further downside risk alive.
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