Ether's $3K Breakout Partly Fueled by Dealer Hedging, Analyst Says
Summary
Dealer hedging, which boosted bitcoin's price in late 2023, is now impacting ether's value. Market makers sold calls at $3,000, creating negative gamma exposure, prompting them to hedge by buying ether. This activity, starting at 6:48 a.m. UTC, helped lift ether above $3,000. Similar patterns were seen in the bitcoin market in November. In mid-2023, market makers held positive gamma exposure, stabilizing price volatility. However, dealer activity became a positive force for bitcoin in the final quarter, and more recently for Ethereum due to the Dencun upgrade and spot ETF narrative.
