Analysis: Risk of long squeeze rises, ETH may retest the $1,800 support level
BlockBeats news, on March 19, according to Cointelegraph, Ethereum dropped to around $2,100, with a daily decline of 7%, mainly due to the Federal Reserve's interest rate decision and higher inflation expectations. In the past 24 hours, the total amount of long liquidations in the crypto market reached $492.8 millions, with more than $144 millions of ETH long positions forcibly liquidated. More critically, CoinGlass data shows that if ETH falls below $2,000, it will trigger over $2.5 billions in leveraged long liquidations across all trading platforms, meaning that if bearish momentum continues, ETH will face a greater risk of waterfall-style declines. In addition, the US spot Ethereum ETF recorded a net outflow of over $55.5 millions on Wednesday, ending the previous six consecutive days of net inflows.
In the past eight FOMC meetings, ETH has declined after seven of them. The typical post-FOMC pullback ranges from 16% to 23%, while deeper deleveraging phases can see declines of 33% to 43%.
From a technical perspective, $2,100 is the current key support level, coinciding with the upper boundary of the ascending triangle and the 50-day moving average. If bulls can hold this position, the next target is $2,575 (100-day moving average), followed by the triangle measured target of $2,700. If $2,100 is lost, ETH will retest the triangle support line around $2,000; if it further breaks below the 20-day moving average, it faces the risk of dropping to $1,800.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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