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Ethereum (ETH) might be heading into a period of higher volatility starting in April, according to Nick Forster, founder of Derive. Despite the current quiet market, Forster believes Ethereum’s low implied volatility, currently at monthly lows, is a key indicator that price swings could soon increase.
Forster pointed out that the market’s expectation of future price moves for Ethereum is low right now. The 7-day implied volatility is at 59%, and the 30-day is at 45%, both showing a dip. Historically, these low levels haven’t lasted long, suggesting volatility could pick up.
What’s the Short-Term Sentiment on Ethereum?
The low volatility comes with a weak short-term outlook, as Ethereum’s forward rate has dropped below the U.S. Treasury’s 5% yield. This suggests some lack of confidence in Ethereum’s near-term performance. However, Forster noted that these conditions often precede price movements.
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