Summary
- Price volatility is expected to increase ahead of Ethereum's Pectra upgrade.
- QCP Capital reported that demand for Ethereum call options is increasing for periods after March 28th.
- However, they noted that the weakness in the altcoin market could be a variable affecting Ethereum's price increase.
Analysis suggests that Ethereum (ETH) price volatility may increase.
On the 18th (local time), QCP Capital announced through their official Telegram that "Ethereum's price volatility could increase ahead of the Ethereum Pectra upgrade scheduled for early April," adding that "demand is concentrating on Ethereum call options with expiration dates after March 28th." They continued, "During the 2022 Merge upgrade, Ethereum rose more than 100% from its low before sharply declining," and added that "during the 2023 Shanghai upgrade, Ethereum also rose 30% over several months."
However, they pointed out that the bearish sentiment in the altcoin market could be a variable affecting Ethereum's rise. QCP stated, "Altcoins are showing overall weakness," and added that "for a meaningful altcoin recovery, real utility adoption rather than speculative liquidity is necessary."
Meanwhile, a call option refers to the right to buy a specific underlying asset at a predetermined strike price. Call option buyers can profit from the difference when the market price of the underlying asset is higher than the predetermined strike price at expiration.
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
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