- Analysts at QCP Capital claim that the implied volatility of Ethereum options for near-term dated contracts has increased dramatically.
- They noticed that there was a lot of purchasing activity for ether top-side calls and that the digital asset may rise above $4,000 and reach its peak of $4,800 due to ether ETF flows.
Early-day trading saw a spike in spot prices for Ethereum, while experts noted that implied volatility for near-term ether options contracts had dramatically increased.
According to experts at QCP Capital, Ethereum spot prices have significantly increased from a morning low of $3,400, with implied volatility noticeably climbing to 65% in the front end.
This discovery is consistent with data from The Block’s Data Dashboard, which shows that over the last 24 hours, the implied volatility for seven-day at-the-money ether options has risen beyond 62%.
Ever since spot ether exchange-traded funds were approved on Thursday, May 23, by the U.S. Securities and Exchange Commission, Ethereum ATM options implied volatility has been high across all ranges.
The experts went on to say that two developments have reinforced this strong positive mood. Firstly, the SEC is concluding its examination of Ethereum 2.0 and rejecting any accusations that ether sales constitute securities transactions.
The second is that, according to reports, potential spot ether ETF issuers are replying to SEC remarks and intend to return them this week.
Ethereum may rise nearly to a record high.
Analysts at QCP Capital also noted that this optimism has been reflected in the options market.
The desk is seeing a lot of purchasing activity for top-side calls across different tenors, and they said that even with the uncertainty surrounding the spot ether ETF’s acceptance, it has the potential to push ether over $4,000 and get closer to its peak of $4,800. It currently captures 10–20% of spot bitcoin ETF flows.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
