The unexpected change of events has seen Ethereum (ETH) suddenly soar, surpassing $2,400 and setting a new high for the year. ETH led a strong recovery in the cryptocurrency market, which has been extremely volatile in recent weeks, driving key implied volatilities (IVs) to all-time highs.
https://x.com/GreeksLive/status/1740182681726689362?s=20
Prominent market experts have pointed out that institutional FOMO (fear of missing out) has not yet materialised, which is noteworthy. The cryptocurrency analytics company Greeks.live used X (formerly Twitter) to discuss Ethereum’s recent performance. They claim in a tweet that the spike in ETH has caused all major term IVs to record annual highs in addition to pushing the cryptocurrency above the $2,400 mark.
Furthermore, the daily volume (DVOL) increased to 70%, a level not observed since April. The tweet, which examined options data, noted that the rise has not been reflected in the skew, which is a measure of the perceived distribution of possible price outcomes. This implies that the FOMO connected to ETH’s bullish run has not yet been completely embraced by institutional traders.
Market dynamics
The tweet also discussed market dynamics, highlighting the tight liquidity circumstances at year’s conclusion. It implied that the market is vulnerable to abrupt increases and decreases under certain circumstances. On the other hand, it pointed out that options purchases had a favourable breakeven ratio, suggesting a possible opportunity for strategic investors.
Ethereum’s price as of the most recent data available is $2,380, indicating a significant gain of 6.49% over the previous day. The price of ETH has increased impressively by 18.88% in the last 30 days. Ethereum’s trade volume has also experienced a significant increase, jumping by 84.35% over the past day to reach $17.9 billion.
Though the gains are remarkable, the market is speculating about possible catalysts that might force institutional traders to enter the FOMO-driven rise, given their muted response. It is unclear if this is a sign of cautious optimism or just a temporary lull before a more significant institutional inflow. As the year comes to an end, the notoriously unpredictable cryptocurrency market remains a source of both excitement and conjecture.
