Coinbase flags $589M short gamma position near ETH $1,980

Coinbase Markets said on X that an around $589 million short gamma position has formed near ETH at $1,980. In a short gamma zone, options dealers’ hedging trades can amplify selling pressure when prices fall and buying pressure when prices rise, it said. Coinbase Markets added that if ETH tests $1,980, the strength of the existing support level could weaken and price volatility could increase.