Ethereum registers 6-monthly low Implied Volatility

Friday 6 June 2020, 6:28 AM AEST - 1 month ago

Ethereums price movement since the start of June has triggered various alterations in the market. On-chain metrics were evidently indicating various trends but some of them had peculiar differences.

skew_ether_price_as__of_bitcoin_price.pngSource: Skew

Glassnodes recent chart brought everyones attention to the recent increase in Ethereum price as a percentage of Bitcoins price. At the moment, Ethereum value was 2.5 percent of Bitcoins price which is strong revival from 2.1 percent from May 15th.

However, the above positive uptick has occurred in a span of 48 hours as only on 2nd June, Ethereums valuation was on a decline. Many may suggest such price variation would indicate a rise in volatility but the particular difference was evident only in the aforementioned metric.

skew_ethusd__iv_vs_rv.pngSource: Skew

As observed in the chart above, in spite of the recent hike, Ethereum is exhibiting a 6-month low Implied Volatility at 3.8 percent in the chart. The decrease in Implied Volatility has been a consistent trend since the collapse in May and the recent price surge up to $253, did not proliferate a trend reversal.

However, with respect to Bitcoin, it was under a different story altogether.

skew_ethbtc_1m_atm_implied_vol_spread.pngSource: Skew

According to the above chart, Ethereum-Bitcoin 1-month Implied Volatility Spread is currently on the rise which suggested that Bitcoin hasnt been able to keep up the same pace as Ethereums valuation has in the market. Since the 2nd week of May, Ether has registered significant improvement in terms of on-chain fundamentals and the interest in ETH futures and options has a ...

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