Friday Newsletter

Explore the latest trends, gain valuable insights, and stay informed in the dynamic cryptocurrency ecosystem.

26 April 2024

A small 2.25% price drop this weekend could lead to the liquidation of over $500 million in Ether long positions. If Ether repeats its recent weekend volatility, more than half a billion dollars in long positions may be at risk.

Concerns grow as the United States Securities and Exchange Commission (SEC) may reject spot Ether exchange-traded fund (ETF) applications in May. At the time of writing, Ether is trading at $3,134 according to CoinMarketCap data.

Recent weekends have seen brief bursts of volatility in Ether’s price followed by recoveries to key support levels. On April 20, prices dipped by 2.25% to $3,036. On April 13, prices fell nearly 9% to $2,950 before recovering to $3,075.

A similar 2.25% drop this weekend could trigger $510 million in long liquidations, according to CoinGlass data. A more significant 9% decline could result in $853 million being wiped out.

Ethereum faces broader uncertainties with spot ETF applications and legal challenges. On April 24, Cointelegraph reported that the SEC is expected to reject spot Ether ETF applications in May, based on recent meetings with the regulator.

Four sources involved in the meetings stated that discussions with the SEC have been one-sided, with little substantive feedback on proposed products.

On April 25, software company Consensys filed a lawsuit against the SEC and its five commissioners, challenging the potential regulation of ETH as a security.