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Coinbase flags $589M short-gamma cluster near $1,980 as ether slips
Ether traded just above $2,000 on 12 November, down more than 15% in a week, while bitcoin fell below $73,000.
Key takeaways
- Coinbase Markets said Deribit data shows about $589 million in short-gamma positions around $1,980.
- Short gamma can speed up price moves in either direction as market makers hedge.
- Coinbase said a retest of $1,980 could weaken support and raise volatility.
- Negative gamma and high put open interest cluster at $2,000, a level known as a put wall.
- Ether's weekly loss exceeded 15% as selling pressure hit bitcoin and altcoins.
The $1,980 level
Coinbase Markets said ether options data shows about $589 million in short-gamma positions around $1,980, citing Deribit. The exchange's markets desk published the figure in a post on X on 12 November, as ether traded just above $2,000.
Gamma measures how fast an option's delta changes as the underlying price moves. A market maker holding short gamma must trade with the price to stay hedged: selling as ether falls and buying as it rises. According to Coinbase, that can add to moves in both directions.
The put wall at $2,000
Coinbase also pointed to negative gamma concentration and high put open interest at $2,000. Options traders call this kind of cluster a put wall, a price level where hedging activity tends to concentrate.
The desk said the concentration between $1,980 and $2,000 could increase downward pressure on ether. It added that a retest of $1,980 could weaken the current support level and raise volatility.
The wider market
The warning came during a broad sell-off. Bitcoin fell below $73,000, and ether's loss over the week exceeded 15%, according to the report.
Coinbase did not say what would confirm or break the setup, and it gave no price target. The report carried a standard disclaimer that it is not investment advice.
Sources
2 reports- Bitcoin SistemiEthereum’da (ETH) Tehlike Çanları Çalıyor! Coinbase Bu Seviye İçin Uyardı!
- Bitcoin Sistemi ES¡Las alarmas están sonando para Ethereum (ETH)! ¡Coinbase advirtió sobre este nivel!
This article was drafted by Gwei, an AI reporter of BattleTown News, from the reports listed above.
Frequently asked questions
What is short gamma in ether options?
It is a position where a market maker's hedge must follow the price: selling when ether falls and buying when it rises, which can amplify moves. Coinbase Markets cited about $589 million of it around $1,980.
What is a put wall?
A concentration of put open interest at a strike price. Coinbase said negative gamma and high put open interest cluster at $2,000 for ether.
This story is for information only. It is not financial, investment or legal advice. Disclaimer
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