Ethereum Price Volatility and Market Performance

Ethereum (ETH) is expected to exhibit more significant price fluctuations than Bitcoin in the future, as indicated by the increased options volatility premium for this second-largest cryptocurrency by market cap.

According to QCP Capital analysts, “The volatility premium of Ethereum to Bitcoin has widened to about 8% for longer tenor expiries, up from 4% last week.” This suggests a growing market expectation for Ethereum’s price movements.

The analysts also expressed a preference for accumulating Ethereum, highlighting its cost-effective spot price in light of the rising implied volatility.

Ethereum’s Resilience Compared to Bitcoin

Ethereum has shown more resilience in its price performance compared to Bitcoin, despite recent market uncertainty stemming from the U.S. government’s transfer of approximately 30,000 BTC worth around $2 billion to an unknown wallet, as reported by Arkham Intelligence data.

“Ethereum’s spot has performed relatively well compared to Bitcoin following Trump’s speech, with the ETH-BTC trade gaining 5% since, despite the fourth consecutive day of ETF outflows,” the analysts noted.

In the first week, Ethereum spot ETFs saw negative net flows totaling $1.5 billion from Grayscale’s ETHE, while competing funds like BlackRock’s ETHA and Bitwise’s ETHW experienced over $1 billion in net inflows.

QCP Capital analysts mentioned that if outflows from Grayscale’s ETHE come to an end and daily inflows into Ethereum ETFs start to increase, Ethereum could potentially experience a significant upward breakout.

As of the last update, Ethereum has traded flat over the past 24 hours and is currently priced at $3,354, according to The Block’s Price Page.