Deribit Exchange Data Reveals Ether’s Path to $4,400 as Gamma Squeeze Looms

Ether's rally could accelerate toward $4,400, driven by a hidden signal in the derivatives market. The net gamma exposure of dealers in Deribit-listed ETH options indicates a critical inflection point. Dealers are currently short gamma between $4,000 and $4,400—a dynamic that tends to amplify price movements.

As ETH breaches $4,000, market makers may be forced to buy the asset to hedge their positions. This creates a self-reinforcing cycle that could propel prices rapidly higher. The $4,400 level emerges as a logical target, where gamma dynamics shift and dealer activity could stabilize volatility.

"When dealers turn net buyers, it often fuels momentum," observed one trader. The setup mirrors past episodes where gamma squeezes drove parabolic moves in crypto assets. With institutional interest growing in ETH's ecosystem, the derivatives tailwind adds another layer to the bullish thesis.