Analyst: Ethereum options implied volatility remains high

ChainCatcher news, according to The Block, analysts say that despite a significant drop in the implied volatility of Bitcoin options, the uncertainty surrounding the future price of Ethereum keeps its options implied volatility at a high level.

Data shows that the Bitcoin volatility index has fallen from 72% at the time of the halving to a several-month low of 55%. In contrast, the Ethereum indicator during the same period has decreased from 76% to the current 65%, showing a smaller decline. Bitfinex analysts believe that the SEC will make a decision on two spot ETH ETFs on May 23, which adds additional uncertainty to the Ethereum price, causing its volatility risk premium to decrease less than that of Bitcoin.

Additionally, QCP Capital analysts point out that the risk reversal of Ethereum options remains at -4%, with put option prices higher than call option prices, reflecting bearish sentiment among investors. In contrast, the risk reversal for Bitcoin has turned positive, with call options being more expensive than put options, indicating a bullish market.