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 raised market demand, pushing prices higher.

Chung pointed out that the premium of CME Bitcoin futures is still at a low level, indicating that this round of increase is driven by short covering. Typically, the establishment of new long positions with leverage leads to an increase in basis, which reminds us that rising markets sometimes only reflect position adjustments and risk reduction.