The Obelisk in Risk of Rain 2 is the climax of a hidden mini-quest that only opens up once you’ve looped your run at least once.
It’s situated in a secret realm called A Moment, Fractured which is a series of floating platforms in a void that you reach through a Celestial Portal. Here’s how you can locate it.
Where is the Obelisk in Risk of Rain 2

To get to the Obelisk, you first have to loop your run by realigning the Primordial Teleporter on a late stage so it sends you back to the beginning instead of to the final boss.
After looping, you’ll occasionally see a Celestial Orb circling the teleporter on later stages. This usually happens in the third stage after your first loop.
Once the teleporter event is over, a Celestial Portal will spawn next to the teleporter. Walk into that instead of the usual exit and it drops you into A Moment, Fractured.
Once inside this weird floating world, you’ll jump from island to island. You’ll notice a trail of glowing blue shards that shows the way.
At the very last island is the Obelisk, the massive dual-monolith thing with a glowing blue core where you can interact with it.

What Happens When You Interact With the Obelisk
Approaching the Obelisk gives you a prompt to “obliterate yourself at the Obelisk.”
Interacting with it twice confirms the choice and immediately ends your run for everyone in the game. Doing so will allow you to complete the True Respite challenge, which unlocks the melee character Mercenary for future runs, and you also get 5 Lunar Coins for doing it.
Moreover, if you happen to be carrying the Beads of Fealty lunar item when you activate the Obelisk, you won’t just end your run right away. Instead, you’ll be sent to another hidden realm called A Moment, Whole, where you face a random powerful Twisted Scavenger boss.

Defeating that boss nets you a Scavenger’s Sack with 10 Lunar Coins before your run finally ends.
Long story short, the Obelisk is the endpoint of a secret hidden realm unlocked by a Celestial Portal after looping.
As soon as you get to it, interacting ends your run but gives you progression. With special lunar items, you can also unlock an extra hidden boss content.
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