Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • TRADE
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • TRADE
Crypto Flexs
Home»ETHEREUM NEWS»Here’s what ETH implied volatility tells us:
ETHEREUM NEWS

Here’s what ETH implied volatility tells us:

By Crypto FlexsMay 8, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Here’s what ETH implied volatility tells us:
Share
Facebook Twitter LinkedIn Pinterest Email

The cryptocurrency market has recently seen a stark difference in the behavior of two major assets: Bitcoin and Ethereum. While Bitcoin appears to be entering a phase of relative stability, Ethereum’s journey presents a contrasting picture of continued uncertainty, especially in the options markets.

This difference is highlighted by the continued high levels of implied volatility associated with Ethereum options, signaling a cautious outlook among investors regarding future price movements.

Ethereum Sustained Volatility: Comparative Analysis

Implied Volatility (IV) serves as an important indicator in the options market and provides insight into the expected price movement of an asset over a specific period of time. It measures the strength of potential price movements that traders expect, reflecting market temperature.

A recent analysis found that while Bitcoin’s implied volatility stabilized significantly after the halving, Ethereum did not follow suit. While Bitcoin’s IV has fallen to multi-month lows, indicating a calming of the market, Ethereum’s IV remains high.

Unlike the calming waves of the Bitcoin market, Ethereum is struggling with heightened volatility. According to data from the Bitfinex Alpha Report, Bitcoin’s volatility index decreased sharply from 72% at the time of the recent halving to around 55%.

Bitcoin (BTC) has implied volatility. | Source: Bitfinex Alpha Report

On the other hand, Ethereum’s volatility index decreased slightly from 76% to 65% over the same period. This continued volatility in the Ethereum market is primarily caused by uncertainty surrounding important upcoming regulatory decisions and their broader market implications.

Ethereum (ETH) hinted at volatility.
Ethereum (ETH) hinted at volatility. | Source: Bitfinex Alpha Report

The Ethereum market is particularly nervous in anticipation of the U.S. Securities and Exchange Commission’s (SEC) impending decision on two spot Ethereum ETFs, scheduled for late May 2024.

Upcoming regulatory milestones are considered significant events that could spur major market movements or worsen current volatility.

The Bitfinex Alpha report highlights that regulatory uncertainty is a key driver of the less significant decline in Ethereum’s Volatility Risk Premium (VRP) compared to Bitcoin.

ETH and BTC show signs of recovery amid volatility

Ethereum and Bitcoin showed signs of recovery in terms of trading performance last week. Bitcoin rose 4.1%, while Ethereum reported a slight increase of 2.4%.

TradingView Ethereum (ETH) price chart
ETH price is moving sideways on the 4-hour chart. Source: ETH/USDT on TradingView.com

However, over the past 24 hours, Ethereum has seen a slight decline of 0.7%, highlighting continued volatility and investor caution.

Moreover, Ethereum’s network dynamics reflect suppressed activity, with a significant decrease in ETH burn rate due to lower transaction fees.

These technical aspects further complement the cautious Ethereum market narrative, with potentially significant changes likely to occur following external regulatory action.

Despite all this, analysts like Ashcrypto propose The current volatility could set the stage for a strong rebound in the third quarter of this year. Based on historical patterns, speculative predictions for Ethereum could potentially reach the $4,000 mark if market conditions align favorably.

Featured image by Unsplash, chart by TradingView

Disclaimer: This article is provided for educational purposes only. This does not represent NewsBTC’s opinion on whether to buy, sell or hold any investment, and of course investing carries risks. We recommend that you do your own research before making any investment decisions. Your use of the information provided on this website is entirely at your own risk.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Checkpoint #4: Berlinterop | Ether Leeum Foundation Blog

June 28, 2025

Crypto Scam Markets thrives again after attempting to clean up Telegram.

June 24, 2025

Bitcoin is more than $ 104K as the merchant’s eyes move from H2 to $ 145,000.

June 20, 2025
Add A Comment

Comments are closed.

Recent Posts

Checkpoint #4: Berlinterop | Ether Leeum Foundation Blog

June 28, 2025

TRON Price Propects USDT supply exceeded $ 80 billion

June 28, 2025

Stablecoin startups surpass 2021 venture capital peaks as institutional money spills.

June 28, 2025

No Altcoin Season 2025 ? Why Bitcoin Dominance Is Holding Strong In The Crypto Market

June 28, 2025

Why It Matters For Every Crypto Investor

June 27, 2025

Why It Matters For Every Crypto Investor

June 27, 2025

Safe smart account audit summary

June 27, 2025

CARV’s New Roadmap Signals Next Wave Of Web3 AI

June 27, 2025

CARV’s New Roadmap Signals Next Wave Of Web3 AI

June 27, 2025

Bybit Expands Global Reach With Credit Card Crypto Purchases In 25+ Currencies And Cashback Rewards

June 27, 2025

BYDFi Joins Seoul Meta Week 2025, Advancing Web3 Vision And South Korea Strategy

June 27, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

Checkpoint #4: Berlinterop | Ether Leeum Foundation Blog

June 28, 2025

TRON Price Propects USDT supply exceeded $ 80 billion

June 28, 2025

Stablecoin startups surpass 2021 venture capital peaks as institutional money spills.

June 28, 2025
Most Popular

Bitcoin hash rate hits new high, your money triples.

April 1, 2024

NIST Solicits Public Comments on AI Safety in Response to Biden’s Executive Order

December 21, 2023

Daan Crypto Trades, X Hall of Flame

May 21, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.