Reduced implied volatility of ether and bitcoin at-the-money (ATM) options signals diminished confidence in the potential for higher prices, according to an analyst.

According to The Block's Data Dashboard, implied volatility (IV) for ether ATM options has dropped from over 88% to a current IV of around 60% for one week, one month and multi-month expires. IV for bitcoin ATM options for the same expiry ranges has also fallen, from a mid-month high of over 77% to a current reading of below 51%.

"The plummeting implied volatility is astonishing" according to cryptocurrency derivatives trader Gordon Grant. He told The Block the multi-week IV drop is consistent with a decline in realized volatility as well.

Traders 'throw in the towel' on higher price expectations

Grant added that …