Ethereum Volatility Outlook

Ethereum (ETH) may experience higher volatility starting in April, according to Nick Forster, founder of Derive. Despite the current calm in the market, Forster indicates that Ethereum’s low implied volatility, currently at monthly lows, is a significant indicator that price fluctuations could soon rise.

Forster observed that the market’s expectations for future price movements of Ethereum are low at present. The 7-day implied volatility stands at 59%, while the 30-day is at 45%, both reflecting a decline. Historically, such low levels do not persist for long, hinting that volatility could increase.

Short-Term Sentiment on Ethereum

The low volatility is coupled with a weak short-term outlook, as Ethereum’s forward rate has dropped below the U.S. Treasury’s 5% yield, indicating some lack of confidence in its near-term performance. Nevertheless, Forster noted that similar conditions often precede notable price movements.

Derive’s analysis suggests a 30% chance that Ethereum could dip below $1,800 by the end of May, and a 19% chance it could soar above $2,500.

Related: Arthur Hayes’ Hot Take: Ethereum to $5,000 Before Solana Even Nears $300

Technical Analysis for Ethereum’s Price

In a more bullish outlook, crypto analyst ZAYK Charts sees upward momentum for Ethereum. His analysis shows Ethereum bouncing from its lower trendline and nearing key resistance at $2,500, with potential targets ranging 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 analysis indicates Ethereum has broken out of a descending triangle pattern, often signaling strong price movements after a consolidation period.

Big Picture Prediction for Ethereum

Arthur Hayes, co-founder of BitMEX, made a bold prediction stating that Ethereum is likely to reach $5,000 before Solana hits $300. This forecast contributes to the increasing positive sentiment surrounding Ethereum’s price potential.

Related: Ethereum’s Price is Up, But This Analyst Still Sees Trouble Ahead

Ethereum is currently trading around $2,070, reflecting a slight increase of 0.35% over the last 24 hours.

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