Eternal Sleep is a state of being acted upon as a sentence to ghosts and priests in purgatory that frequently participate in illegal activity, especially if the perpetrator is responsible for the death of another ghost or human.
Eternal sleep is a sentence that can only be acted on by a priest with Pluto and Persephone's agreement. It is the ultimate punishment to be given in purgatory and used only in response to serious issues with dire consequences. In eternal sleep, the ghost or priest is reverted to a bodiless state by the priest enacting the sentence and placed in a sealed-off area. There the ghost or priest exists only in the limbus realm created by them when they first died. At no point can the effects of this be reversed.
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Examples of eternal sleep in practice are shown in the last two episodes of season two, in which Foppen and Sterbenfrau are placed under this sentence by Schutze and Kleinod respectively. In Jewels of Malice, Sterbenfrau briefly condemns Sternenglanz to this state, but kills him immediately after by extinguishing his soul.