#ETHBreaks4000 Ethereum up to $4,400??

This Hidden Signal Points to a Potential Rapid Rally:

August 9, 2025

A hidden signal from the derivatives market suggests that Ether (ETH)’s rally could accelerate further and prices could soon reach $4,400.

This signal relates to the net gamma exposure of dealers or market makers in the Ether options market listed on Deribit. Gamma is a key metric for options traders that measures how an option’s delta, i.e. the sensitivity of the underlying asset’s price to the market, changes in response to market movements.

When dealers are short gamma, they are forced to buy the asset when the price rises and sell it when the price falls, which often accelerates the movement in the direction of the market.

Dealers provide liquidity to the order book and make a profit from the bid-ask spread, while trying to keep the price neutral.

According to data from Amberdata, currently $4,000 and There has been a notable increase in short gamma between the $4,400 levels. When ether rises above $4,000, dealers can buy the asset to hedge their exposure, creating a positive feedback loop that can quickly push the price to $4,400. At the $4,400 level, gamma tends to turn positive, forcing dealers to trade against the market to prevent price volatility.

This level provides a logical pullback for this rally.

Greg Magadini, director of derivatives at Amberdata, told CoinDesk that if the market momentum is strong enough to break through the $4,000 level, dealers could become buyers of ETH beyond that, paving the way for a sharp rally towards $4,400, the next key gamma inventory level.