Ethereum (ETH) might be heading into a period of higher volatility starting in April, according to Nick Forster, founder of Derive. Despite the current quiet market, Forster believes Ethereum’s low implied volatility, currently at monthly lows, is a key indicator that price swings could soon increase.
Forster pointed out that the market’s expectation of future price moves for Ethereum is low right now. The 7-day implied volatility is at 59%, and the 30-day is at 45%, both showing a dip. Historically, these low levels haven’t lasted long, suggesting volatility could pick up.
What’s the Short-Term Sentiment on Ethereum?
The low volatility comes with a weak short-term outlook, as Ethereum’s forward rate has dropped below the U.S. Treasury’s 5% yield. This suggests some lack of confidence in Ethereum’s near-term performance. However, Forster noted that these conditions often precede price movements.
Derive’s analysis also shows a 30% chance Ethereum could fall below $1,800 by the end of May, and a 19% chance it could jump above $2,500.
Related: Arthur Hayes’ Hot Take: Ethereum to $5,000 Before Solana Even Nears $300
What Technical Analysis Suggests for Ethereum’s Price?
Adding a bullish view, crypto analyst ZAYK Charts sees upward momentum for Ethereum. His analysis shows Ethereum bouncing from its lower trendline and approaching key resistance at $2,500, with potential targets between $2,900 and $3,100.
$ETH The price has bounced from the lower trendline and is showing signs of upward momentum✅
Next key resistance $2500 (upper trendline of the wedge)✍️
Potential targets are between $2900 and $3100, with further upside if momentum continues🚀#Ethereum pic.twitter.com/oRnITPOzvg
— ZAYK Charts (@ZAYKCharts) March 24, 2025
ZAYK Charts’ technical chart indicates Ethereum has broken out of a descending triangle pattern, often a sign of strong price movements after a period of consolidation.
What’s the Big Picture Prediction for Ethereum?
Arthur Hayes, co-founder of BitMEX, made a bold call, saying Ethereum is likely to hit $5,000 before Solana reaches $300. This forecast adds to the growing positive sentiment around Ethereum’s price potential.
Related: Ethereum’s Price is Up, But This Analyst Still Sees Trouble Ahead
Ethereum is currently trading around $2,070, showing a slight increase of 0.35% over the last 24 hours.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
