Analysts say uncertainty surrounding Ethereum's future price has kept the asset's options implied volatility much higher than Bitcoin's. In contrast, Bitcoin's implied volatility has fallen more, suggesting that derivatives traders believe the Bitcoin market is stabilizing. Implied volatility (IV) is an indicator used in the options market that represents the market's prediction of the possible future movement or price fluctuations of an asset or security.
Data shows that Ethereum's IV has not fallen as much as Bitcoin during the current market adjustment period after the halving. The Bitcoin Volatility Index fell from 72% at the time of the halving event to a multi-month low of 55%, while the same indicator for Ethereum fell less sharply during the same period, from 76% to the current 65%.
According to analysts at QCP Capital, Ethereum does not see the same positive sentiment among options traders as Bitcoin. Ethereum put options are more expensive than call options, which generally indicates bearish sentiment among investors. (The Block)