Deribit Exchange Data Signals Ethereum Rally to $4,400 as Gamma Squeeze Looms

Ethereum's price appears poised for a significant upward MOVE toward $4,400, according to derivatives market data from Deribit exchange. Analysts have identified negative net gamma exposure among dealers for Ether options between $4,000 and $4,400—a technical setup that could force market makers to aggressively buy ETH as prices rise, creating a self-reinforcing rally.

This gamma effect occurs due to options dealers' hedging requirements. When dealers hold short gamma positions, they must buy during price increases and sell during declines, which amplifies market movements. Current positioning suggests that if ethereum breaks through the $4,000 level, dealers may become substantial buyers, potentially accelerating ETH's climb to the $4,400 target where the gamma dynamics would shift.