As a researcher with several years of experience in the cryptocurrency market, I’ve seen my fair share of volatility. And based on the current state of affairs, I can’t help but feel a sense of unease as over half a billion dollars in Ether long positions teeter on the edge of potential liquidation.
Approximately 500 million dollars’ worth of long positions in Ether are at risk as the cryptocurrency market prepares for possible volatility. At its current price of $3,141, even minor price fluctuations could lead to substantial sell-offs, bringing back memories of recent turbulent weekends.
The impending rejection of an Ether exchange-traded fund (ETF) proposal by the U.S. Securities and Exchange Commission (SEC) casts doubt on the situation, causing apprehension among investors. They worry about potential negative outcomes if the SEC denies approval next month.
Over the past few weekends, Ether’s price has experienced significant volatility. On April 20th, its value dipped by 2.25%, reaching a low of $3,036. The weekend before that, it took a sharp turn downwards, dropping almost 9% to hit $2,950. However, Ether managed to recover and bounced back up to $3,075 by the following Monday.
If history repeats itself this weekend, we’re at risk for significant losses. A mere 2.25% decrease from the current price would result in approximately $510 million worth of long liquidations. However, if the market experiences a more drastic decline similar to the 9% drop seen the previous week, the consequences could be dire, with over $853 million being potentially wiped out.
Beyond the current turmoil, Ethereum‘s future remains uncertain with several unanswered questions. The community is on edge as they await decisions regarding the establishment of an Ethereum investment fund. Additionally, there are ongoing legal disputes that could impact its development.
Investors remain cautious, closely monitoring market developments and regulatory changes to anticipate potential impacts on Ethereum.
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2024-04-26 11:52