CoinVoice recently learned that, according to a report by CoinDesk, CF Benchmarks CEO Sui Chung analyzed that the recent price rebound of Ethereum is mainly driven by short covering rather than new bullish bets in the market. Although the ETH price has risen nearly 90% since the beginning of April, breaking through $2,600, the one-month annualized premium for 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 the futures basis level rise. This reminds us that not all rallies are driven by new demand; sometimes they reflect market repositioning and risk adjustment."
The weak inflow of funds into Ethereum ETFs listed in the U.S. further supports this view, with only ten trading days of net inflows in the past four weeks, and only once exceeding $100 million. These market indicators collectively suggest that the current rise in Ethereum prices lacks new demand and strong support from institutional investors. [Original link]
