Yesterday Eurodollar futures took a tumble. It was most pronounced in the March contract:

The only explanation I can find is that it is an overreaction to a tick upwards in USD LIBOR. Overreaction would be the word. Here is US 3-month LIBOR over 1 month, 3 months and 1 year:

Perhaps the market fears that US banks are exposed to European sovereign debt and will see their funding costs rise in the coming few months. But that doesn’t seem like a great explanation.