Ether (ETH) has taken a hit alongside the broader cryptocurrency market. Recent analysis from Nansen highlights that Ethereum faces a significant downside tail risk in the days to come. While current implied volatility levels indicate low expected price movement, analysts warn this could be a miscalculation given the recent price dynamics.Nansen's examination of Ethereum derivatives on the Deribit platform reveals a precarious situation. Despite the options market maintaining a bullish bias, the increasing call-side positioning is at risk. This could lead to heightened volatility, primarily if ETH support levels around $2,200 to $2,300 are tested. Currently, ETH is hovering around $2,200, down from approximately $2,395.The put/call ratio stands at 0.46, showing a call-side preference, with total open interest in Ethereum exceeding 1.860 contracts. Interestingly, there's a key concentration of calls between $2,700 and $3,100, while puts are clustered around $2,200 to $2,500. Current implied volatility for calls sits at 78.57, compared to puts at 76.49, reflecting a slight call-favored skew.Although traders seem to expect limited price movement, Nansen suggests that could be an oversight, particularly as ETH approaches crucial option strike levels and market sentiment is not particularly bullish. Additionally, the dynamic at the $2,500 level has shifted from potential support to immediate resistance, with dealer hedging likely triggering selling near this threshold.The analytics firm points out that while current volatility metrics appear low compared to past years, the market structure indicates bearish tendencies ahead, adding to the caution for Ethereum investors. Stay updated and navigate the ever-changing landscape of digital assets wisely.memecoin #crypto #solana #Ethereum #ai #bitcoin #cryptocurrency⚠️ Disclaimer: This analysis is for informational purposes only and should not be considered financial or investment advice. via /r/Blockmandev https://ift.tt/H74qgyV
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