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The liquidation fears remain, especially with the current level of Ether (ETH) at the $3,145 mark, as its threat of over $500 million in long positions cannot be ignored. The similar prospect of 2.25% on the weekend merely parallels the instability of the last week, where the drop of 9% of value also occurred on the similar day. If history is repeated , $510 million may disappear in about 48 hours, with an additional selling pressure of almost $853 million that could wipe out the whole asset.
Potential Liquidation Looms
This is augmented by growing doubts regarding the SEC’s stand on Ether spot ETF, which adds to the insecurity. In the midst of SEC’s disinclination to approve ETF after the next month, the whole crypto community is in suspense. It is not clear what happened behind closed doors of SEC, but recent meetings between regulators and issuers only led to more concerns as it was reported that the SEC was one-sided and there was no substantial engagement from its side.
Opening a new can of worms, software clustering giant Consensys has sued the SEC and its commissioners. The complaint complies on Ether come regulated like a security pushing Ethereum a legal mess even more deeper. The much-anticipated lawsuit revealed on Thursday against Consensys as well as regulatory challenges is the problem Ethereum has been dealing with on many fronts.
On the other hand, Ethereum may experience turmoil in the markets dynamics if the current uncertainty prevails. The plunge of Ethers over a few weekends, coupled with the quick rebound afterward, proves that the current Ether position is vulnerable. Investors now spend their weekends in a state of disquiet, constantly worrying about potential liquidations that could exert a huge impact on the profitability of cryptocurrency.