According to analysts, the Ethereum (ETH) price has risen thanks to the recent activity of market makers and liquidity providers.
According to Griffin Ardern, research manager of BloFin, one of the cryptocurrency platforms liquidity providersrecently from 3 thousand dollars too many call option sold.
These are as Ethereum price approaches $3k from spot and futures markets He bought Ethereum and this contributed to the rise in the Ethereum price.
A similar situation occurred in November, when Bitcoin price In periods when it exceeded 36 thousand dollars It happened.
Arden, “Most of the traders’ negative gamma is concentrated at $3,000, so market makers need to hedge against risks there. Negative gamma is the market maker’s 3 thousand dollars strike price It means he is selling too many call options. To solve this, market makers have to trade in the direction the price is moving – buying Ethereum as the price rises.” said.