Ethereum News Today: Ether Price Could Surge to $4,400 Due to Dealer Gamma Exposure Flip

Generated by AI AgentCoin World
Friday, Aug 8, 2025 2:56 pm ET1min read
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- Negative gamma exposure in Deribit ETH options between $4,000-$4,400 could trigger rapid price acceleration via self-reinforcing dealer buying.

- Short gamma forces dealers to purchase ETH as prices rise, amplifying trends through hedging demands and bid-ask spread strategies.

- Current ETH price above $4,000 activates dealer buying cycles, potentially propelling price toward $4,400 where gamma dynamics stabilize.

- Amberdata analysts warn dealers may become net ETH buyers at higher levels, creating momentum for a swift $4,400 rally if $4,000 resistance breaks.

- Market observers highlight $4,400 as critical gamma flip point, with dealer behavior serving as short-term price trajectory indicator.

A potential catalyst for a swift price surge in ether (ETH) has emerged through a technical signal in the Deribit-listed ether options market. The net gamma exposure of dealers in this market is currently negative between the price levels of $4,000 and $4,400. This dynamic could create a self-reinforcing positive feedback loop, pushing the price of ether higher at an accelerated pace [1].

Gamma is a critical metric in options trading, reflecting the rate of change of an option’s delta in response to price movements in the underlying asset. When dealers are short gamma, they are compelled to buy the underlying asset as its price rises and sell when it drops, often magnifying price trends. This behavior is driven by their need to hedge exposure and maintain a balanced, price-neutral position while profiting from bid-ask spreads [1].

At the moment, there is a notable concentration of short gamma exposure between the $4,000 and $4,400 price levels, according to Amberdata. With ether’s price now crossing above $4,000, dealers are likely to respond by purchasing more ether to hedge their exposure. This could create a reinforcing cycle where rising demand pushes the price higher, reaching $4,400—where the gamma dynamic flips to positive, prompting dealers to trade against the market and stabilizing the price [1].

Greg Magadini, director of derivatives at Amberdata, explained that if the momentum is sufficient to break through $4,000, dealers may become net buyers of ETH at higher levels. This could fuel a rapid rally to $4,400, the next significant gamma inventory level. “We see dealers also become net buyers of ETH at higher prices, potentially leading to a

quick
rally to $4,400,” Magadini said [1].

The market is closely watching how this dynamic plays out. If ether’s price continues to gain traction above $4,000, the resulting dealer behavior could accelerate the move toward $4,400, making it a key price level to monitor. As ether options activity intensifies, the interplay between dealer gamma exposure and price action could serve as a barometer for the asset’s short-term trajectory [1].

Source:

[1] Ether to $4.4K? This Hidden Signal Suggests a Possible Quick Fire Rally (https://www.coindesk.com/markets/2025/08/08/ether-to-usd4-4k-this-hidden-signal-suggests-a-possible-quick-fire-rally)