The status of Ethereum options for the end of May suggests that investors are unsure about the approval of a spot Ethereum ETFs anytime soon. According to market analysts, this uncertainty leads to the expectation of significant price fluctuations.
YouHodler Market Chief Ruslan Lienkha Lienkha said this increased skepticism is also evident in derivatives markets:
“Ether options expiring at the end of May show us a significant volatility increase in the $3,600 strike price region. “A possible exceedance of this price level by the spot market will be accompanied by high volatility.”
Lienkha also added that the implied volatility curve may be altered by new data or SEC discourse over the next month.
Cryptocurrency derivatives trader Gordon Grant said in a statement that market participants have been selling April volatility in favor of May over the past month. According to the analyst, this trend is evidenced by the upward sloping term structure and compression in the Ethereum price movements.
However, after the sharp rise and partial reversal in the Ethereum spot price earlier this week, Grant observed that this situation has now reversed. “There does not appear to be an overly rich valuation for May, which is known to be a positive month compared to neighboring months,” Grant said.
For the April expiration date, Grant stated that market participants appear to have taken a more short position. Analysts expect this month's implied volatility levels to remain stable or decrease and Ethereum's actual movements to be limited. This expectation stems from derivatives traders taking into account the implied volatility movement expected for this month compared to later months, particularly May.
*This is not investment advice.
