The post Ethereum Enters FTX-Style Panic as Funding Rates Turn Deeply Negative appeared on BitcoinEthereumNews.com.

Ethereum funding rates hit -0.028% on Binance, matching extreme levels last seen during the FTX collapse in 2022. Over $1.1 billion in ETH positions liquidated as price crashes below $2,500 support to test the $2,200 zone. Geopolitical tensions between the US and Iran trigger $470B crypto market loss over three days amid selloff.   Ethereum has entered a critical stress zone. Funding rates on major exchanges have plummeted to levels not seen since the FTX collapse.  The decline comes as geopolitical tensions between the United States and Iran trigger a broad crypto market selloff. Total market capitalization shed nearly $300 billion in a single session. Cumulative losses over three days now exceed $470 billion. Mass Liquidations Push ETH Into Negative Funding Territory The market chaos triggered over $2.5 billion in liquidations across crypto derivatives. Ethereum bore a significant portion of the damage.  According to data shared by analyst Darkfost, approximately $1.1 billion in ETH positions were liquidated. This forced selling created a sharp disconnect between perpetual and spot markets. 🔴 ETH Funding Rates hit FTX-era extreme level. The crypto market pushed further lower today, primarily driven by rising geopolitical tensions between the United States and Iran.This renewed wave of risk aversion triggered another round of broad selloffs across risk assets, and… pic.twitter.com/UpmKIXTOch — Darkfost (@Darkfost_Coc) January 31, 2026 Binance recorded ETH funding rates at -0.028%, an extreme negative reading. Such levels typically appear only during severe market distress. The last comparable instance occurred during the FTX collapse in late 2022.  Aggregated funding rates across exchanges fell even further to -0.078%. ETH Price Tests Critical Support Zones Ethereum lost its $2,500 support level before 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 losing this level…

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Filed under: News - @ February 1, 2026 11:26 am