ETH Implied Volatility Surges to 67%, Traders Target $2,700 Price

Ethereum's one-week implied volatility has more than doubled to 67%, sparking a surge in calendar spread trades targeting $2,700 by early September. This strategy involves selling near-term calls priced with high volatility and buying longer-term calls with lower volatility, aiming to profit if short-term volatility drops while longer-term remains stable.

The trade could yield an 88.8% return if ETH settles near $2,700 by September 4 expiration. The volatility spike signals increased market uncertainty for Ethereum's short-term price movement, with risks if ETH moves sharply beyond the strike price before expiration.