$510M long positions in jeopardy if Ether experiences the same level of volatility as last weekend

If Ether experiences the same price volatility as it did last weekend, over $500 million worth of Ether long positions could face liquidation. The concern arises from the possibility that the United States Securities and Exchange Commission (SEC) may reject spot Ether exchange-traded fund (ETF) applications in May. As of now, Ether is trading at $3,134. In the past month, its price has fluctuated between $3,705 and $2,915. Ether has recently witnessed short bursts of price volatility over the weekends but has managed to recover quickly. If a similar drop occurs this weekend, approximately $510 million in long liquidations could be at risk. A more substantial decline, similar to the 9% drop observed last weekend, would result in $853 million being wiped in long liquidations. The potential for significant liquidations is a cause for concern, as Ethereum is already facing uncertainties regarding the status of spot ETF applications and other legal challenges. Recently, it has been reported that the SEC is expected to reject spot Ether ETF applications in May, based on discussions with issuers and firms. These discussions have been one-sided, with agency staff not providing substantive details about the proposed products. Additionally, software development company Consensys has filed a lawsuit against the SEC and its five commissioners, alleging plans to regulate ETH as a security. It is important to note that this article does not provide investment advice, and readers should conduct their own research before making any decisions.