In an unexpected development, Ethereum (ETH) has undergone a rapid upswing, breaching the $2,400 threshold and attaining a new peak for the year. Against the backdrop of heightened volatility in the cryptocurrency market in recent weeks, ETH has led a vigorous rally, propelling major implied volatilities (IVs) to their highest levels of the year.
Remarkably, significant institutional fear of missing out (FOMO) has yet to materialize, according to notable market observers. Cryptocurrency analytics platform Greeks.live took to X (formerly Twitter) to share insights on Ethereum’s recent performance.
The long-dormant #ETH led a new rally, breaking above $2,400 to a new high for the year, driving all major term IVs back to yearly highs, and DVOL back to 70%, also a new high since April.
Looking at options data, Skew remains at recent levels and has not followed the rally,… pic.twitter.com/jhTjj5n23s
— Greeks.live (@GreeksLive) December 28, 2023
According to their social media update, the surge in ETH not only propelled it past the $2,400 barrier but also led to all major term IVs reaching yearly highs.
Moreover, the daily volume (DVOL) surged to 70%, marking a level unseen since April. The tweet delved into options data, highlighting that the skew, a gauge of the perceived distribution of potential price outcomes, has not kept pace with the rally. This suggests that institutional traders have not fully embraced the FOMO associated with ETH’s bullish surge.
Ethereum Performance And Market Dynamics
The tweet also addressed market dynamics, underscoring the tight year-end liquidity conditions that render the market susceptible to abrupt spikes and falls. Despite this, it identified a favourable breakeven ratio on options purchases, hinting at a potential opportunity for strategic investors.
As of the most recent data available, Ethereum is presently valued at $2,380, reflecting a notable 6.49% increase in the last 24 hours. Over the past 30 days, ETH has witnessed an impressive surge of 18.88%. The trading volume of Ethereum has also experienced a substantial upswing, rising by 84.35% in the last 24 hours and currently standing at $17.9 billion.
However, despite these significant gains, the subdued response from institutional traders has left the market speculating about the potential catalysts that could prompt their entry into the FOMO-driven rally.
Whether this signals a brief pause before a larger institutional influx or indicates cautious optimism remains uncertain. The cryptocurrency market, renowned for its unpredictability, continues to be a source of both excitement and speculation as the year comes to a close.