Analyst: Options market data shows that ETH has the potential to rise to $4400.

BlockBeats news, on August 9, Coindesk analyst Omkar Godbole stated that a hidden signal in the derivatives market suggests that the rise of Ethereum (ETH) may intensify, pushing its price rapidly up to $4400. This key indicator is the net Gamma exposure of market makers in the Deribit Ethereum options market. Gamma is an important metric for options traders, measuring how the options Delta (i.e., its sensitivity to changes in the underlying asset's price) changes with market fluctuations. When market makers are in a negative Gamma state, they are forced to buy the underlying asset when prices rise and sell when prices fall, which typically amplifies the market's one-sided volatility. Market makers provide liquidity to the order book, profiting from the bid-ask spread while striving to maintain a price-neutral net exposure. According to data provider Amberdata, there has been a significant accumulation of negative Gamma in the $4000 to $4400 strike price range. As Ethereum breaks through $4000, market makers may buy Ethereum for hedging, creating a self-reinforcing positive feedback loop that drives the price rapidly up to $4400. This price point will turn the Gamma dynamics positive, forcing market makers to take reverse actions to dampen price fluctuations. Amberdata's derivatives director Greg Magadini stated, "If market momentum is strong enough to break through $4000, we will see market makers becoming net buyers of Ethereum at higher price levels, potentially leading to a rapid price increase to $4400, which is the next significant Gamma inventory level." This makes $4400 a reasonable target for the current upward trend.