Unwinding of Ether Short Are Fueling ETH Price Surge, CF Benchmark Says

Unwinding of Ether Short Are Fueling ETH Price Surge, CF Benchmark Says

Ether's ETH rally, though impressive, leaves much to be desired. That's because the unwinding of shorts is said to be fueling the rally, not fresh longs or bullish leveraged bets on the Chicago Mercantile Exchange (CME)."The rally is primarily the result of short covering – traders unwinding bearish positions – rather than a surge of bullish conviction," Sui Chung, CEO of crypto index provider CF Benchmarks, told CoinDesk. CME's derivatives, pre…

CF Benchmarks Links ETH Price Increase to Short Covering as Bears Retreat

Ethereum’s recent rally above $2,600 is not a result of strong bullish conviction but rather a wave of short covering, according to CF Benchmarks CEO Sui Chung. The sharp upward move in ETH price began after an early April sell-off, yet data shows limited inflows into spot ether ETFs and a muted CME futures premium. This signals the move is not backed by new leveraged longs. As traders unwind bearish positions, Ethereum’s valuation gets a tempor…