If the key switch is sloppy, you can overshoot the contact.

Try slowly moving the key back and forth in the #2 position to see if power comes on.

Sounds like a power supply issue, if not the switch than start checking fuses.

Jim

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14 E250 BlueTEC black. 45k miles
95 E320 Cabriolet Emerald green 66k miles
94 E320 Cabriolet Emerald green 152k miles
85 300TD 4 spd man, euro bumpers and lights, 15" Pentas dark blue 274k miles