{"id":15416,"date":"2024-07-22T16:02:47","date_gmt":"2024-07-22T13:02:47","guid":{"rendered":"https:\/\/forklog.com\/en\/expert-warns-of-ethereum-pullback-risks-following-etf-launch\/"},"modified":"2024-07-22T16:02:47","modified_gmt":"2024-07-22T13:02:47","slug":"expert-warns-of-ethereum-pullback-risks-following-etf-launch","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/expert-warns-of-ethereum-pullback-risks-following-etf-launch\/","title":{"rendered":"Expert Warns of Ethereum Pullback Risks Following ETF Launch"},"content":{"rendered":"<p>Ethereum options have seen a sharp rise in implied volatility (IV). According to Valentin Fournier from BRN, this suggests a risk of a sell-off wave following the ETF launch, with a gradual recovery thereafter, reports <a href=\"https:\/\/www.theblock.co\/post\/306598\/ethereum-sell-pressure-etf-debut-implied-volatility\">The Block<\/a>.<\/p>\n<p>The <span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> approved July 23 as the start date for trading spot exchange-traded funds based on the second-largest cryptocurrency by market capitalization.<\/p>\n<p>Against this backdrop, the monthly IV jumped from 56% to 70% over the week, according to <a href=\"https:\/\/metrics.deribit.com\/options\/ETH\">Deribit<\/a>.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/1-1116.webp\" alt=\"1-1116\" class=\"wp-image-237460\"\/><figcaption class=\"wp-element-caption\">Data: Deribit.<\/figcaption><\/figure>\n<p>The put-to-call ratio for options expiring on July 26 rose to 0.45. This indicates traders&#8217; desire to hedge long positions against price declines.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/2-837.webp\" alt=\"2-837\" class=\"wp-image-237461\"\/><figcaption class=\"wp-element-caption\">Data: Deribit.<\/figcaption><\/figure>\n<p>The largest open interest is concentrated in contracts with a strike price of $3700. In other words, traders expect movement towards this level in the coming days, writes The Block.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/3-474.webp\" alt=\"3-474\" class=\"wp-image-237462\"\/><figcaption class=\"wp-element-caption\">Data: Deribit.<\/figcaption><\/figure>\n<p>Fournier believes the ETF launch could push Ethereum down to the $2800-3100 range, followed by a rise to $4000 as the effect of inflows into the instruments becomes apparent.<\/p>\n<p>The expert advised &#8220;not to lose hope for the asset&#8217;s positive dynamics.&#8221; The analyst explained a preference for Bitcoin, as &#8220;the hype and inflows [into exchange-traded products] are already reflected in the price of the second-largest digital asset by market capitalization.&#8221;<\/p>\n<p>Earlier, Steno Research forecasted a net inflow of $15-20 billion into future funds over the year and a rise in Ethereum to $6500.<\/p>\n<p>K33 Research estimated inflows into products in the first five months after trading begins at $3.1\u20134.8 billion. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ethereum options have seen a sharp rise in implied volatility (IV). According to Valentin Fournier from BRN, this suggests a risk of a sell-off wave following the ETF launch, with a gradual recovery thereafter, reports The Block. The SEC approved July 23 as the start date for trading spot exchange-traded funds based on the second-largest [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":15415,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1168,1146,569,46],"class_list":["post-15416","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-crypto-derivatives","tag-cryptocurrency-market-forecasts","tag-etf","tag-ethereum"],"aioseo_notices":[],"amp_enabled":true,"views":"9","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/15416","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=15416"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/15416\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/15415"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=15416"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=15416"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=15416"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}