Ether to $ 4.4k? This Hidden Signal Suggests A Possible Quick Fire Rally

The Indicator Under Consideration is the Net Gamma Exposure of Dealers/Market Makers in the Deribit-Listed Ether Options Market. Gamma is the Critical Metric for Options Traders, Measuring How and Option’s Delta, or Its Sensitivity to the Underlying Asset’s Price, Changes in Response to Market Moves.

WHEN DEALERS ARE SHORT GAMMA, SRE FORCED TO BUY The Underlying Asset As Its Price Rises and Sell As Its Price Falls, WHICH OFTEN AMPLIFIES DIRECTAL MOVES. Dealers Provide Liquidity to the Order Book and Make Money from the Bid -Ask Spread While Constantly Striving to Maintena A price-neutral Net Exposure.

AT Press Time, There Was A Notable Buildup of Short Gamma Between Strikes $ 4,000 and $ 4,400, Accounting To Data Source Amberdata. With Ether Crossing Above $ 4,000, Dealers Could Buy The Asset To Hedge Their Exposure, Creating A Self-Referking Positive FeedBack Loop that Could Could Rapidly Propel The Price High. That’s a Level WHERE The Gamma Dynamic Shifts Positive, Requiring Dealers to Trade Against the Market and Arrest the Price Volatility.

Ether Options: Dealer Gamma Distribution. (Deribit/Ambrdata)

This Makes the $ 4,400 A Logic Price Magnet for the Ongoing Rally.

“If the momentum in the market is strong author to get through $ 4,000, wese see dealers also become Net Buyers of Eth at Higher Prices, Potentilly Leading to A quic Level, “Greg Magadini, Director of Derivatives at Amberdata, Told Coindesk.