- Ethereum’s implied volatility at monthly lows signals a potential rise in volatility.
- Technical analysis shows Ethereum’s upward momentum, targeting $2,500 to $3,100.
- Arthur Hayes predicts Ethereum will reach $5,000 before Solana hits $300.
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.
Derive’s analysis also shows a 30% chance Ethereum could fall below $1,800 by the end of May, and a 19% chance it could jump above $2,500.
Related: Arthur Hayes’ Hot Take: Ethereum to $5,000 Before Solana Even Nears $300
What Technical Analysis Suggests for Ethereum’s Price?
Adding a bullish view, crypto analyst ZAYK Charts sees upward momentum for Ethereum. His analysis shows Ethereum bouncing from its lower trendline and approaching key resistance at $2,500, with potential targets between $2,900 and $3,100.
ZAYK Charts’ technical chart indicates Ethereum has broken out of a descending triangle pattern, often a sign of strong price movements after a period of consolidation.
What’s the Big Picture Prediction for Ethereum?
Arthur Hayes, co-founder of BitMEX, made a bold call, saying Ethereum is likely to hit $5,000 before Solana reaches $300. This forecast adds to the growing positive sentiment around Ethereum’s price potential.
Related: Ethereum’s Price is Up, But This Analyst Still Sees Trouble Ahead
Ethereum is currently trading around $2,070, showing a slight increase of 0.35% over the last 24 hours.
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