Ethereum’s Volatility Is At Multi-Year Lows, Signalling Potential Action

The latest Ethereum news show that the ETH cryptocurrency is at new record lows when it comes to its volatility. In fact, Ethereum’s volatility is at multi year lows now and the downtrend which has been here since early November has resulted in the price of this altcoin to face an ongoing period of sideways trading. However, analysts are now wondering if this low volatility could result in a spark soon.

The lack of volatility has impacted Ethereum before, during and after its Istanbul hard fork. At press time, we can witness the lowest 60-day volatility levels since 2016, signalling that a massive movement is imminent at this time.

In more detail, we can see that Ethereum’s volatility comes in time when ETH is trading down just under 1% at its current price of $144.55, marking a slight decline from its daily highs of just over $146.

Over the past week, we could see that ETH has been ranging within the mid-$140 region and finding strong support at roughly $140 as well as strong resistance at $150. This trading range is what has been growing tighter in recent times as ETH has been stuck between $142 and $145 for the past few days. Currently, Ethereum’s volatility shows fewer signs of any major trend shift being imminent in the near term.

The sideways trading has come about concurrently with a major drop in the 60-day volatility for ETH, which is right now at multi-year lows. Analysts at CoinMetrics (a blockchain research firm) were in the crypto news for noting that this could mean a big price movement is imminent.

“With $ETH’s 60d volatility falling to levels not experienced since 2016 are we finally due for some price action? Or just more of the same,” they said when pointing to the price chart seen below.

With $ETH's 60d volatility falling to levels not experienced since 2016 are we finally due for some price action? Or just more of the same… pic.twitter.com/QiViLIDnO6

— CoinMetrics.io (@coinmetrics) December 13, 2019

Now, it is highly probable that any ETH movement will still remain dependent on Bitcoin as BTC has been a strong guiding force over major altcoins in recent times. Even though it remains unclear as to whether or not Ethereum’s volatilty could translate to a massive movement, opinions are split.

The co-founder of Ethereum, Joseph Lubin, recently spoke about the strength that the cryptocurrency has. As he said in a tweet:

“Over 20M total #Ethereum accounts were created in 2019. Over $650M USD is currently locked in #DeFi. Over 4.5M $ETH was issued this year from block rewards. The @ethereum machine just keeps chugging!”

Over 20M total #Ethereum accounts were created in 2019.

Over $650M USD is currently locked in #DeFi.

Over 4.5M $ETH was issued this year from block rewards.

The @ethereum machine just keeps chugging! 🚂https://t.co/nmu7guIcHS

— Joseph Lubin (@ethereumJoseph) December 13, 2019