Analysis: The rise of Ethereum is due to short positions covering rather than bullish sentiment.

According to ChainCatcher news and a report by CoinDesk, CF Benchmarks CEO Sui Chung analyzed that the recent price rebound of Ethereum is mainly driven by short positions cover, rather than new bullish bets in the market. Although the ETH price has risen nearly 90% since early April, breaking the $2,600 mark, the one-month annualized premium of CME Ethereum futures remains in a low range of 6% to 10%, failing to increase with the price rise. Chung emphasized: In a more conventional market environment, if traders establish new long positions with leverage, we expect to see an increase in the futures basis level. This reminds us that not all rises are driven by new demand; sometimes they reflect market repositioning and risk adjustment. The weak inflow of funds into the spot Ethereum ETFs listed in the United States further supports this view, with only ten trading days showing net inflows over the past four weeks, and only once exceeding 100 million USD. These market indicators collectively suggest that the current pump in Ethereum prices lacks new demand and strong support from institutional investors.