A short-gamma pocket of $589 million in Ethereum options near the $1,980 price level creates a risk of increased market volatility. Dealer hedging activity in this zone may force additional selling as prices decline, rather than providing market stability.
As of November 12, Ethereum traded between $2,044 and $2,052. This places the asset within negative gamma territory on the Deribit exchange. The gamma flip zone, where dealer behavior shifts from stabilizing to amplifying, is located between $2,090 and $2,104.
The market shows a negative gamma peak and a put wall at the $2,000 level. Net gamma exposure is currently reported between negative $9.9 million and negative $12.6 million. These indicators suggest that dealer positioning is currently set to amplify price swings.
For options expiring on November 16, the max pain level is set at $1,800. Ethereum has recently declined from highs near $2,400. A recovery above the $2,090 to $2,104 range would be required for dealers to return to a stabilizing role in the market.
