Options dealers' hedging activity drives ether price surge past $3,000
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Options dealers likely bought ETH to hedge their short bets in call options, adding to ether's bullish momentum.
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A similar dealer hedging pattern played out with bitcoin in November, accelerating price gains.
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Negative gamma exposure meant dealers sold many $3,000 call options, needing to buy ether as prices rose toward that level.
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Dealer hedging activity kicked in around 648 AM UTC on Thursday as ether topped $3,000.
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In late 2022, dealer activity arrested volatility in bitcoin and ether, but became positive recently amid ETF optimism and Ethereum upgrade hype.