Ethereum Long Squeeze Risk Rises as ETH Falls to $2,100

Ether (ETH) fell 7% to $2,100 on Thursday, liquidating approximately $144 million in long positions across exchanges. A break below the critical $2,000 support level could trigger over $2.5 billion in additional long liquidations, according to CoinGlass data. The 50-day simple moving average near $2,100 serves as a key technical level for market participants.

US-based spot ETH exchange-traded funds (ETFs) recorded $55.5 million in net outflows on Wednesday, snapping a six-day inflow streak. The combination of ETF selling and leveraged position liquidations has contributed to increased volatility in the ETH market, putting further pressure on bulls to defend key support levels.

Macro Risks and FOMC Influence

Ether’s decline follows the US Federal Open Market Committee’s decision to hold interest rates steady. Historically, ETH has often corrected after FOMC announcements, with drawdowns ranging between 16% and 23%, and deeper deleveraging phases reaching up to 43%.

Technical Outlook and Support Levels

ETH remains cautiously bullish above $2,100, aligning with the upper trendline of an ascending triangle. Sustaining this level could open a path toward $2,575 and the triangle’s measured target near $2,700. Failure to hold above $2,100 may push ETH toward $2,000 and potentially $1,800, increasing downside risk.

The current market highlights the importance of monitoring leveraged positions and macroeconomic developments for Ethereum traders.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.