According to BlockBeats, on May 16, CF Benchmarks CEO Sui Chung stated that the recent rise in Ethereum is mainly due to short covering, rather than strong bullish sentiment in the market. The increase in short covering has boosted market demand, driving up prices.
Chung pointed out that the CME Bitcoin futures premium is still at a low level, indicating that the current rise is driven by short covering. Typically, establishing new long positions with leverage leads to an increase in basis, which reminds us that a rising market sometimes merely reflects position adjustments and risk reduction.
