Ethereum's native token Ether fell to a six-week low on Tuesday, with traders in the options market betting on price weakness over the next six months.
Ether's six-month call-put skew, which gauges the spread between implied volatilities for call and put options expiring in 180 days, slipped to -0.91, the lowest since June 15, according to crypto data provider Amberdata. Per Markus Thielen, head of research and strategy at crypto services provider Matrixport, ether's price appears vastly overvalued compared to its dwindling revenues.
"Based on one quantitative approach, Ether's fair value appears closer to $1,000 or 46% lower than current prices . While we do not necessarily predict such a decline, there is a zero-cost way to position for this decline ," Thielen wrote in an email.