Ethereum Options Sign of Rekindled Market Optimism: QCP Capital
Ethereum 
ETH
+1.47%
Spot prices rebounded in early trading and implied volatility on short-term Ether options contracts increased significantly, analysts said.
“Ethereum spot prices have rebounded sharply from morning lows of $3,400, with implied volatility rising noticeably to 65% on the front end,” QCP Capital analysts said.
These observations are consistent with The Block’s data dashboard. This indicates that the current level of implied volatility for 7-day at-the-money Ethereum options has increased by more than 62% in the last 24 hours. Ethereum ATM options continued to see higher implied volatility across all ranges after the U.S. Securities and Exchange Commission approved a spot Ether exchange-traded fund on Thursday, May 23.
Analysts added that this strong bullish sentiment is supported by two developments. The first is that the SEC will close its investigation into Ethereum 2.0 and rule out any allegations that Ethereum sales were securities transactions. The second is that potential issuers of the spot Ether ETF are expected to respond to the SEC’s comments and return them this week.
Ethereum could surge close to all-time highs.
QCP Capital analysts added that the options market reflected this optimism.
“At our desk, we are observing strong buying activity in the top currencies across a variety of tenors, and despite uncertainty about spot Ether ETF receipts, capturing 10-20% of spot Bitcoin ETF flows could push Ethereum above $4,000.” So it could get closer to $4,800,” he added.
According to The Block’s pricing page, the price of Ether is up more than 1.5% in the last 24 hours, trading at $3,587 at 4:44 a.m. ET.
The GM 30 Index, which represents the top 30 cryptocurrencies, fell 1.17% to 132.75 during the same period.
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