PANews reported on May 16 that Sui Chung, CEO of crypto index provider CF Benchmarks, said that the recent rise in ETH was mainly driven by short covering rather than new long positions established by institutions. The annualized basis of CME Ethereum futures remained in the range of 6%-10%, indicating that the market lacked leveraged long momentum. In addition, the US spot ETH ETF recorded net inflows in only ten trading days in the past four weeks, and only once exceeded US$100 million in a single day. Chung said that this round of rise reflects more risk aversion and position adjustment rather than new market demand.
Viewpoint: ETH's rise is driven by short covering, not new longs
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