Ether Volatility Explodes to Over 100% as ETH Price Crashes
The post Ether Volatility Explodes to Over 100% as ETH Price Crashes appeared on BitcoinEthereumNews.com.
Ether (ETH), the second-largest cryptocurrency by market value, witnessed a significant spike in volatility early Monday as the renewed trade war between the U.S. and its trading partners triggered broad-based risk aversion in financial markets. The price of ether tanked as much as 24%, with considerable dislocations across centralized exchanges. On Deribit, the price hit a low of $2,065, compared with $2,127 on Kraken and $2,150 on Coinbase (COIN), the lowest the Aug. 5 crash, according to TradingView and CoinDesk data. According to CryptoQuant, the slide was the biggest since May 19, 2021. The token of the Ethereum blockchain fell for a third straight day, losing 23% over the period, the most since November 2022. BTC, meanwhile, fell just over 5% to $91,200. Ether’s one-day at-the-money volatility jumped from an annualized 34% to 184% as the price dropped, according to Deribit’s options data tracked by Presto Research. Ether Deribit options: ATM vol. (Laevitas, Ming Jung) Deribit’s ether DVOL index, which measures the expected price turbulence over the coming four weeks, also surged, climbing to 101% from roughly 67%, TradingView data show. The jump came as traders rushed to purchase ETH put options, which offer downside protection, according to Presto Research. “The move, which saw ETH perp prices on Deribit plunge from $3,285 to $2,065, has triggered a significant shift in market positioning, as evidenced by the put-call ratio surging from last week’s relatively calm 0.6 to above 2.5 today – indicating a rush for downside protection among market participants,” Min Jung, an analyst at Presto Research told CoinDesk. At one point, risk reversals, which measure implied volatility premium (demand) for calls relative to puts, flashed negative values over 10%, an unusually strong bias for puts. Market makers added to volatility That partly stemmed from market makers pulling out liquidity, a…
Filed under: News - @ February 3, 2025 10:27 am