According to BlockBeats, on May 16, CF Benchmarks CEO Sui Chung stated that Ethereum's recent rise is mainly due to short covering, rather than strong bullish sentiment in the market. The increase in short covering raises market demand and pushes up prices.
Chung pointed out that the premium for CME Bitcoin futures is still at a low level, indicating that this round of increase is driven by short covering. Typically, establishing new long positions with leverage leads to an increase in the basis, reminding us that bullish trends sometimes only reflect position adjustments and risk reduction.
