Ethereum Rise to 4,400 USD? This Hidden Signal Indicates the Possibility of a Rapid Price Increase

An important signal from the options market is indicating the potential for Ethereum to continue accelerating, with a short term target aimed at the 4,400 USD mark. Gamma – The "Hidden" Index Controlling Price Volatility The indicator that analysts are paying attention to here is Net Gamma Exposure (, the total net gamma exposure ) of market makers ( on the Deribit options exchange for ETH. Gamma is a core measure in options trading, reflecting the rate of change of delta of the option contract as the price of the underlying asset fluctuates. In other words, gamma indicates the degree of "sensitivity" of the contract to price changes of ETH. Short gamma mechanism and self-amplifying price effect When dealers fall into a short gamma state, they are forced to buy the underlying asset when prices rise and sell when prices fall to hedge risks. This inadvertently amplifies the movements in the same direction as the market. Under normal conditions, dealers profit from the bid-ask spread ) and always strive to maintain a delta-neutral ( position. However, when they are short gamma, their hedging behavior may turn into a force pushing prices further away. Zone $4,000 – $4,400: Acceleration Boost According to data from Amberdata, there is currently a large amount of short gamma positions concentrated between the strike prices ) 4,000 USD and 4,400 USD. When ETH surpasses the 4,000 USD mark, dealers will start buying ETH as a hedge, creating a positive feedback loop (, pushing the price up faster. The nearest target of this push is 4,400 USD – where the gamma structure shifts to a positive state ). At that point, dealers will trade against the market to curb price volatility. This makes 4,400 USD a "price magnet" ( reasonable for the current bull run. Analysis from Analysts Greg Magadini – Director of the derivatives segment at Amberdata – said: "If the market momentum is strong enough to surpass 4,000 USD, we will see dealers becoming net buyers of ETH at higher price levels, which could lead to a rapid increase to 4,400 USD – the next large inventory gamma region." Conclusion Signals from the options market are subtly indicating that ETH may continue to break out rapidly in the short term. Investors need to closely monitor the 4,000 USD level, as when this barrier is breached, the 4,400 USD range could be reached in a short time due to the amplification effect from the hedging strategies of dealers. $ETH {spot})ETHUSDT(