Ether options dealers have built a net positive or long gamma exposure and are likely to buy low and sell high, arresting the price volatility ahead of next Friday’s derivatives expiry.
The latest price moves in crypto markets in context for Sept. 21, 2023.
“We still believe that the chances of further declines are higher for now,” one analyst said.
Crypto hedge fund Ouroboros Capital says the token could test the $1,600 price level as protocol profits grow.
The large flow was concentrated in the so-called out-of-the-money calls, indicating a bullish outlook on the second-largest cryptocurrency by market volume, according to Greeks.Live
Liquidations are likely to have less impact on spot prices thanks to declining open interest, FalconX’s head of research noted.
A short squeeze refers to a price rally driven by an unwinding of bearish bets.
U.S. interest rates are back on the rise, but digital assets appear to be unaffected.