Ether’s Path to $4.4K? A Rare Signal Suggests a Quick Price Jump

Ether’s Options Market Reveals Potential for Swift Rally to $4,400

A subtle but telling signal from the ether options market indicates that ETH may soon experience a rapid price surge toward $4,400.

This signal centers on the net gamma exposure of market makers trading Deribit-listed ether options. Gamma measures how an option’s delta—its sensitivity to the underlying asset’s price—changes as the market moves, making it a crucial metric for options traders.

When dealers are short gamma, they must buy ETH as prices climb and sell when prices fall, often amplifying price swings. These dealers provide liquidity and profit from bid-ask spreads while trying to maintain a neutral net position.

According to Amberdata, there is a notable short gamma buildup between the $4,000 and $4,400 strike prices. Since ETH recently crossed above $4,000, dealers may buy more ETH to hedge their exposure, potentially fueling a positive feedback loop that drives prices higher. Around $4,400, the gamma exposure shifts positive, causing dealers to trade against the trend and reduce volatility.

This makes $4,400 a natural price target for the current rally.

Greg Magadini, director of derivatives at Amberdata, told CoinDesk, “If momentum carries ETH beyond $4,000, dealers tend to become net buyers at higher strikes, potentially sparking a rapid rally to $4,400 — the next major gamma level.”