Should Ether repeat the volatile fluctuations observed last weekend, it could potentially expose more than $500 million in long positions to the risk of liquidation, according to recent data. With mounting apprehensions surrounding the fate of spot Ether exchange-traded fund (ETF) applications in May, concerns are intensifying within the cryptocurrency community.

As of the latest update, Ether is trading at $3,134, as per CoinMarketCap. Recent weekends have witnessed brief but notable price swings in Ether, characterized by rapid recoveries to key support levels. For example, on April 20, Ether experienced a momentary dip of 2.25% to $3,036, while the previous weekend saw a more pronounced 9% decline to $2,950 before rebounding to $3,075.

If similar market movements occur during the upcoming weekend, there is a significant risk of widespread liquidations. A modest 2.25% downturn from its current price level could potentially trigger liquidations totaling $510 million, based on CoinGlass data. Moreover, a more substantial decline comparable to the 9% drop observed previously would potentially result in the liquidation of approximately $853 million in long positions.

The possibility of such large-scale liquidations comes amidst broader uncertainties surrounding Ethereum, particularly regarding the fate of spot ETF applications and ongoing legal challenges. Recent reports suggest that U.S. issuers and other market participants anticipate the SEC rejecting spot Ether ETF applications in May, following discussions with regulatory authorities. Participants in these discussions have expressed dissatisfaction with the lack of substantive detail provided by SEC staff regarding the proposed ETF products.

Furthermore, on April 25, Consensys, a prominent software development company, initiated legal action against the SEC and its commissioners, alleging plans to "regulate ETH as a security." These developments have contributed to the prevailing uncertainty surrounding Ethereum and its regulatory landscape, further fueling market volatility and investor apprehension.