Analysts Warn Bitcoin May Struggle to Hold $110K as Ethereum Weakens

The derivatives research firm suggested that if the $110,000 threshold fails again, Ethereum could face deeper selling pressure.

Instead of focusing on price action alone, the team emphasized broader signals of market fatigue. Liquidity has thinned out, making it harder for buyers to absorb selling pressure, while Ethereum has repeatedly failed to surge above the $5,000 mark. The report described the mood among traders as cautious, shaped in part by a negative CB premium that has kept confidence muted.

Volatility Divergence Between BTC and ETH

Interestingly, volatility readings tell a split story. Bitcoin’s implied volatility has been relatively calm at about 35%, suggesting expectations of limited near-term turbulence. Ethereum, however, is pricing in far greater uncertainty, with implied volatility closer to 65%. Analysts noted that this gap underlines how ETH remains more vulnerable to sharper swings than BTC.

Options Market Opens a Window

Despite the gloomy backdrop, Greeks.live highlighted one area of opportunity: options. The current correction has dragged on for more than two weeks, but short-term contracts are still cheap relative to potential payoff. That dynamic, the firm argued, creates a low-cost way for traders to speculate on a rebound — giving limited downside while keeping the door open to significant upside if momentum flips.

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Market Outlook: Why Altcoins May Outperform Bitcoin in the Next Phase

What Traders Are Watching

Market participants will be closely monitoring Bitcoin’s defense of $110,000 and Ethereum’s attempt to break through resistance. Whether support holds or cracks could determine how September closes out for crypto, with the options market providing an increasingly attractive tool for those betting on volatility to return.

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