Viewpoint: ETH's rise is dominated by short covering, not driven by new bulls

Sui Chung, CEO of CF Benchmarks, a cryptocurrency index provider, stated that the recent rise in ETH is mainly driven by short covering, rather than institutions establishing new long positions. The annualized basis of CME Ethereum futures remains in the range of 6% -10%, indicating a lack of leveraged bullish momentum in the market. In addition, the US spot ETH ETF has only recorded net inflows on ten trading days in the past four weeks, with only one single day exceeding $100 million. Chung said that this round of price increase reflects more risk avoidance and position adjustment, rather than new market demand.