According to CoinDesk, ether (ETH) has found support at the $2,200 level, coinciding with the 38 Fibonacci retracement level, an indicator used by traders to gauge potential price stalls or reversals. As the market awaits more constructive price trends, the macro environment remains a focus. Despite a recent uptick in interest rates, the longer-term trend for lower real rates continues to support digital assets, particularly smaller-cap altcoins within the CoinDesk 20 Index, a benchmark tracking top cryptocurrencies.
In the wake of the bitcoin (BTC) spot exchange-traded fund (ETF) launch, the crypto options market has seen expectations subside. A quick ex-post analysis of option implied versus subsequent realized volatility reveals that the bitcoin options market accurately priced in the market reaction, while the ether options team lagged behind in the rally following the bitcoin spot ETF launch. Bitcoin options have also been more efficiently priced over the period. This raises the question of whether the ether team became too complacent in collecting the implied versus realized premium spread.
