On May 16, Sui Chung, CEO of CF Benchmarks, noted that the recent price increase of ETH was mainly due to short position closures rather than new long positions from institutions. The annual interest rate on Ethereum futures contracts on CME ranges from 6% to 10%, indicating that the market lacks the momentum for leveraged long positions.
Spot ETH ETF in the U.S. recorded net inflows only in the last ten trading days, and only once surpassed the $100 million mark in a day. According to Chung, this price increase reflects risk avoidance and position adjustment rather than new market demand.
This is just market information and not investment advice.
Source: https://tintucbitcoin.com/eth-rises-due-to-short-covering-not-new-positions/
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