Ethereum derivatives indicate modest negative tail risk: nansen

ETHER (ETH) has decreased like the rest of the encryption market. However, the scales derived from ETHEREUM that were analyzed by the Nansen market intelligence platform revealed that the cryptocurrency faces more risks of the negative side in the coming days.

According to a report From Nansen, ETH current implicit fluctuations indicate a decrease in expected price movement. However, analysts say this may be bad due to the recent price movements.

Ethereum faces the risk of the negative side

Nansen has evaluated ETHEREUM derivatives on encryption options and a future Excional platform for last week starting from February 25 and the month and Sunnah to check if there is any hope for ETHER.

The company found that although the ETH options market still has a bullish bias, important locations on the side of the calls seem to be increasingly at risk. This referred to the possibility of more fluctuations, especially if the support levels range from $ 2,200-2200 dollars being pressed. As of the report on February 25, the value of ETH was about $ 2,395; However, the value of the original decreased to 2200 dollars at the time of this report.

As of February 25, the PUT/Call 0.46 ratio was indicating the bias of the contact side. ETHEREUM’s total open interest was more than 1.860 nodes, with more than 1.278 calls and about 582,105. There was a major focus of calling for calls ranging from $ 2700, 3100 dollars and $ 2,200 – 2,500 dollars for nails. In addition, the implicit fluctuation for 90 days (IV) for calls was 78.57, while it was 76.49, with a slightly beneficial deviation of +2.08 points.

“90-day implicit fluctuations show the current IV levels (calls at 78.57, with a much less than 76.49) less than they were in the past years. The graph below shows that from 2020-2022, these levels were usually between 120-140 during the“ regular ”market systems and exceeded 160 during the market’s strain. Nansen pointed out until we notice “It appears to be a decrease in the collapse” in the implicit volume of 2023 on the rise.

2500 dollars now the level of resistance

Nansen also mentioned that Ethereum IV levels suggested that merchants do not expect a large price movement; However, this may be a mistake because the price of ETHER at the time was close to the main option strike levels, and the market conditions were not upward.

Analysis Company said that the future Ether structure showed the signs of Habbiya, indicating pressure in the short term. A level of $ 2,500 from a potential support to immediate resistance changes, with “the hedge of the agent is likely to increase the pressure pressure near the level. The agent’s hedging indicates that traders who enter positions will benefit them if their basic investments turn into losses.