A $589 million short-gamma pocket sits near $1,980 in ETH options on Deribit. Dealer hedging there could magnify Ethereum's next move rather than cushion it, and spot trades only modestly above the zone.
A $589 million short-gamma pocket near $1,980 means dealer hedging could magnify ETH's next move rather than cushion it. As of November 12, ETH changed hands in a range of roughly $2,044 to $2,052, inside negative gamma territory on Deribit.
Where dealers flip from stabilizing to amplifying
Dealers who sell options try to stay "delta-neutral." When they are short gamma, that hedging forces them to sell as prices fall and buy as prices rise.
However, the research data places ETH's gamma flip zone between $2,090 and $2,104. Above that band, dealer hedging tends to stabilize price. Below it, hedging amplifies moves, and ETH is currently below the flip.
A put wall at the same level
The data also identifies a negative gamma peak at $2,000, and the nearest-expiry put wall lines up at that same level. A put wall is a strike with heavy put open interest, and it often acts as a magnet or a pressure point as expiry nears.
Together, the negative gamma peak, the put wall and the pocket form a crowded corridor from $1,980 to $2,000. If price wanders in, dealers may need to sell into weakness.
Net gamma exposure, or GEX, is reported between -$9.9 million and -$12.6 million. The source notes this is a different measurement from the $589 million pocket: one describes an aggregate dealer position, the other exposure clustered around a specific price zone.
Max pain sits lower, and ETH has already slid
For options expiring on November 16, max pain sits at $1,800, below the $2,000 put wall. That leaves the options market's center of gravity leaning lower than spot.
ETH recently slid from highs of approximately $2,400 to its current range around $2,050. Snapshots from early November show the market flipping between positive and negative gamma.
The research points to a likely increase in volatility as ETH approaches the $1,980 to $2,000 threshold. Traders may also reposition around the $1,800 max pain level and the $2,000 put wall as the November 16 expiry nears.
Source: Crypto Briefing
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