Connect with us
Active Currencies 14762
Market Cap $2,570,584,995,878.90
Bitcoin Share 51.38%
24h Market Cap Change $-0.57

Ethereum registers 6-monthly low Implied Volatility

2min Read

Share this article

Ethereum‘s 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.

Source: Skew

Glassnode’s recent chart brought everyone’s attention to the recent increase in Ethereum price as a percentage of Bitcoin’s price. At the moment, Ethereum value was 2.5 percent of Bitcoin‘s 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, Ethereum’s 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.

Source: 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.

Source: Skew

According to the above chart, Ethereum-Bitcoin 1-month Implied Volatility Spread is currently on the rise which suggested that Bitcoin hasn’t been able to keep up the same pace as Ethereum’s 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 also assisted its case.

Ethereum’s correlation with Bitcoin has also dropped down to 0.8497 at press time, which is significantly down from last month’s 0.89 index.

In the current market, it would not be inaccurate to state that Ethereum has been the major needle mover in the industry since the conclusion of Bitcoin halving but the apparent turbulence might tip in favor of Bitcoin in the near-term as the largest digital asset continues to struggle to sustain a position over $10,000.


Biraajmaan is a full-time journalist at AMBCrypto covering the US market. A graduate in Automobile engineering, he writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.