PANews reported on July 22 that according to The Block, derivatives market participants expect Ethereum volatility to be high this week because the spot Ethereum ETF will begin trading on Tuesday. An analyst predicts that Ethereum may see selling pressure on the day the spot Ethereum ETF is listed, and then the price will gradually recover. On Friday, the Chicago Board Options Exchange confirmed that several spot Ethereum exchange-traded funds from fund managers such as Fidelity Funds, Franklin Templeton Funds and VanEck will begin trading on Tuesday, July 23. In view of this, Ethereum options open interest reflects that the market expects the price volatility of the digital asset to rise. For example, according to Deribit data, the implied volatility of Ethereum options has risen from 56% to 70% in the past week.
According to BRN analyst Valentin Fournier, the price of Ethereum could fall immediately after the spot Ethereum exchange-traded fund begins trading. "Ethereum is likely to face significant selling pressure at the start of the week, and the launch of the ETF may not immediately offset that pressure," Fournier said. This prediction is consistent with the distribution of open interest in front-end Ethereum options, with the ratio of put options to call options surging to 1.45, according to Deribit data. This indicates that there are more put options relative to call options, suggesting that traders are expecting an immediate drop or that they are looking to hedge against a price drop. In the long term, Fournier expects the price of Ethereum to fall to between $2,800 and $3,100 before rebounding to around $4,000, due to the impact of gradually growing demand for spot exchange-traded funds.
