Traders are increasingly purchasing put options for Ethereum to hedge against potential price declines. Data from Block Scholes shows that seven-day put options for Ether traded at an implied-volatility premium of up to eight percentage points over calls during the weekend.
The seven-day implied volatility for Ether has risen by nearly 10 percentage points. Meanwhile, Bitcoin's implied volatility increased from below 30% to 33% since last Friday. Over the past 30 days, Ether has fallen by approximately 8%, whereas Bitcoin gained 1.5%.
Bitcoin continues to trade within the range of $80,000 to $84,000. Analyst Thahbib Rahman noted that the short-dated put-call skew has widened for both assets since the beginning of October, reflecting a growing demand for protection against market losses.
Broader market sentiment is currently affected by a decline in artificial intelligence investments. Chipmaker stocks have dropped nearly 20% in two weeks, and the VIX index has reached its highest level since the Federal Reserve's July FOMC meeting.
