The hidden signals in the derivation market suggest that ETH may quickly break through $4400.

robot
Abstract generation in progress

On August 9, a certain media analyst stated that a hidden signal in the derivation market indicates that the rise of Ether (ETH) may intensify, pushing its price to quickly reach 4400 dollars.

This key indicator is the net Gamma exposure of market makers in the Ethereum options market on a certain trading platform. Gamma is an important metric for options traders, measuring how the option's Delta (i.e., its sensitivity to changes in the underlying asset price) changes with market fluctuations.

When market makers are in a negative Gamma state, they are forced to buy the underlying asset when prices rise and sell when prices fall, which often amplifies one-sided market volatility. Market makers provide liquidity to the order book, profiting from the bid-ask spread while trying to maintain a price-neutral net exposure.

According to information from the data platform, there has been a significant negative Gamma accumulation in the strike price range of 4000 to 4400 dollars. As Ethereum breaks through 4000 dollars, market makers may buy Ethereum for hedging, creating a self-reinforcing positive feedback loop that drives the price to rise rapidly to 4400 dollars. This price level will cause the Gamma dynamics to turn positive, forcing market makers to take reverse actions to curb price volatility.

A derivatives director from a data platform stated: "If the market momentum is strong enough to break through 4000 USD, we will see market makers becoming net buyers of Ethereum at higher price levels, potentially causing the price to rise quickly to 4400 USD, which is the next important Gamma inventory level." This makes 4400 USD a reasonable target for the current rise.

ETH6.58%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 6
  • Repost
  • Share
Comment
0/400
GateUser-4b15237avip
· 18h ago
dfnjkdjnkld
Reply0
SandwichTradervip
· 22h ago
It has risen again, this is frustrating.
View OriginalReply0
SchrodingersFOMOvip
· 22h ago
Who said 4400, my Position has just been cleared.
View OriginalReply0
hodl_therapistvip
· 22h ago
Are there any suckers entering a position?
View OriginalReply0
GasFeeNightmarevip
· 22h ago
Wake up, you're looking at the moon again.
View OriginalReply0
PseudoIntellectualvip
· 22h ago
4400 bucks, staying up late to eat.
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)