Ethereum (ETH) has dropped below the critical $4,000 mark, signaling a potential shift in market sentiment, according to Greeks.live macro researcher Adam. The breach of this psychological level has led to a sharp skew towards put options, indicating increased expectations of downside risk. Despite stable implied volatility, gamma exposure has risen as market makers purchase puts for hedging purposes.
The situation suggests a possible bearish repricing in the options market if Ethereum remains below $4,000. Similar trends are noted in Bitcoin (BTC), although with comparatively lower volatility, highlighting a broader cautious sentiment in the crypto market.
Ethereum's Dip Below $4,000 Signals Bearish Sentiment Shift
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