The past 24 hours were particularly rough for the collective cryptocurrency industry; a short-term correction saw assets declining in the charts. Ethereum dropped down to as low at $1732. While the market managed to recover at press time, there was a looming concern that the bearish drag was not over.
Ethereum might be receiving a bullish push from the derivatives side of the market, as trades indicated a bullish sentiment till the end of February.
ETH Realized Volatility >Implied Volatility since 29th Nov-2020
According to Skew charts, Ethereum’s realized volatility indicated a positive above Implied Volatility for the first time since November 29th, 2020. Realized Vol surpassing Implied Vol suggested that Ether’s market is currently more volatile than expected. Such a situation may or may not favor Ethereum’s spot prices but other factors indicated an overall positive sentiment.
As observed in the above chart, Open-Interest on Ethereum Options across multiple platforms remained close to its all-time high activity with Deribit exhibiting its ATH at press time. Rising OI indicated current value of ETH contracts active in the space, and a higher OI can always lead to more price appreciation in a bullish trend.