Key takeaways
ETH briefly reached $4,300 before dropping to $4,270 amid profit-taking.
$4,400 remains the next major target for growth, supported by short gamma positioning in the options markets.
Strong open interest and high funding rates suggest bullish momentum but increase the risk of cascading liquidations.
Chain data shows that whale accumulation is slowing around $4,300 as sellers defend key resistance.
Ethereum (ETH) rose to $4,300 on Saturday morning before retreating to $4,270 as traders took profits after a week-long rally driven by derivative positioning and overall strength in the crypto market. This move marked the highest level for ETH since March 2024 and occurred amid increased speculation about a potential 'lightning' rally to $4,400.
According to Amberdata, the net gamma exposure of dealers in the ETH options market quoted on Deribit remains negative between $4,000 and $4,400. This configuration forces market makers to buy ETH as its price rises to hedge exposure — this feedback can accelerate upward movements. The gamma profile turns positive around $4,400, making this level a probable 'price magnet' for traders.
Key resistance and support levels
Immediate resistance: $4,300 (psychological level) and $4,320–$4,340 (seller concentration zone).
Key resistance: $4,400, where gamma in the options market turns positive, and sellers may become active.
Support levels: $4,250 (short-term low) and $4,180 (last consolidation zone).
Breakout risk: below $4,150, long positions may be liquidated at $4,000.
Prospects of Futures and Derivatives
Open interest: Open interest in ETH futures on major exchanges has reached a multi-month high, indicating increased positioning using leverage.
Funding rates: remain positive and above the quarterly average, suggesting dominance of long positions but also increasing the risk of compression.
Options positioning: short gamma between $4,000–$4,400 creates conditions for amplified movements if momentum persists.
Chain Data and Supply Dynamics
Exchange flows: whale deposits have slightly increased at $4,300, signaling potential distribution.
Supply rate: over 27% of ETH supply remains staked, reducing immediate selling pressure.
Network activity: gas usage is stable, with DeFi protocols constituting the bulk of transaction fees.
Market context and next steps
Ethereum's performance tracks the CoinDesk 20 index, which has risen by 4.5% over the past 24 hours amid increasing risk appetite in the broader crypto market. The bullish scenario depends on whether ETH can hold above $4,250, allowing derivative dynamics to push towards the $4,400 milestone.
However, if sellers limit the movement and profit-taking activation increases, a pullback to $4,180–$4,200 may occur before a new breakout attempt. Traders are watching for confirmation in option flows, spot demand, and whale positioning before making aggressive bullish bets.