Ethereum: Potential Price Dip Ahead of Dencun Upgrade

Risk Reversals Hint at Investor Concerns

As Ethereum prepares for the Dencun upgrade, QCP Capital warns of a negative trend in “risk reversals.” This suggests investors are hedging against a potential price decline. The increased interest in put options, which protect against losses, reflects growing concerns.

Market Leverage and Correction Fears

The market’s high leverage also raises concerns about a potential correction. QCP Capital cautions that if prices dip, there could be a rush to buy, but it also highlights the potential for a downward spiral.

Spot-Forward Spreads Narrowing

Ethereum’s spot-forward spreads have decreased, unlike Bitcoin’s, indicating a possible downward drag on prices if leverage is unwound.

Ethereum’s Performance

Despite the cautionary signals, Ethereum remains strong in the market, trailing Bitcoin in price movements. Over 94% of ETH addresses are profitable, suggesting a holding pattern and reduced selling pressure.


Ethereum’s growth has been more measured than Bitcoin’s, but the Dencun upgrade could provide a catalyst for price increases. However, investors should be aware of the potential risks highlighted by QCP Capital.