Ethereum volatility may surge in April, says Derive founder

Ethereum (ETH) may be entering a phase of heightened volatility, with decentralized options platform Derive identifying signs of a potential breakout despite weak short-term sentiment, Decrypt reported. Nick Forster, founder of Derive, explained that ETH’s implied volatility is currently at monthly lows with 7-day and 30-day tenors at 59% and 45%. He said such low levels are rarely sustained and suggested that volatility could begin rising sharply in April. Although market activity remains quiet, Forster noted that ETH’s forward rate is now below the U.S. Treasury’s 5% yield, signaling weak short-term confidence. He added that this setup has often preceded price rallies as lower forward rates tend to make leveraged positions more attractive and drive up demand.