Analysis: The risk of a long squeeze is rising, and ETH may test the $1,800 support level again

Ethereum has 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 million, with over $144 million in ETH long positions being forcibly liquidated.

More critically, CoinGlass data shows that if ETH falls below $2,000, it will trigger over $2.5 billion in leveraged long liquidations across all trading platforms, meaning that if the bearish momentum continues, ETH will face a greater risk of a waterfall decline. Additionally, the U.S. spot Ethereum ETF recorded a net outflow of over $55.5 million on Wednesday, ending a streak of 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%, with deeper deleveraging phases seeing declines of 33% to 43%. From a technical perspective, $2,100 is currently a key support level, closely coinciding with the upper boundary of the ascending triangle and the 50-day moving average. If the bulls can hold this position, the next target is $2,575 (100-day moving average), and above that is the triangle measurement 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.