Ethereum’s price dropped 7% to $2,100, triggering $144 million in long liquidations after the Federal Open Market Committee decided to maintain interest rates. The cryptocurrency risks further decline if it breaches the $2,000 support level, potentially triggering billions in additional liquidations.
Ethereum’s price fell by 7% to $2,100, leading to $144 million being liquidated from long positions. The decline followed the U.S. Federal Open Market Committee’s decision to maintain interest rates despite a higher inflation outlook.
The drop endangered the crucial $2,000 support level. A breach could trigger over $2.5 billion in additional long liquidations. Ether reached a low of $2,140 during the correction, and total crypto market liquidations over the last day amounted to $492.8 million.
Ethereum has often reacted to FOMC announcements in its price moves. Over the past two years, it has fallen following seven out of the last eight FOMC meetings. CoinGlass reports that the current state of liquidations points to increased risk of a more significant downward plunge.
Technically, Ethereum remains cautiously bullish despite macro risks. It is testing a strong base near $2,100, which coincides with the upper line of an ascending triangle pattern and the 50-day simple moving average. The downside could depend on the $2,000 level, and a break might lead to a correction toward $1,800.
Market volatility demands caution. Data on Ether’s buying behavior suggests a potential rally, but the prevailing negative mood and FOMC risks could spoil this picture. The danger of a long squeeze is real, and stakeholders should be careful.
