TechFlow, May 16 — According to CoinDesk, Sui Chung, CEO of CF Benchmarks, analyzed that Ethereum's recent price rebound has been primarily driven by short covering rather than new bullish bets from the market. Although ETH prices have risen nearly 90% since early April, surpassing $2,600, the one-month annualized premium for CME Ethereum futures remains in a low range of 6% to 10%, failing to rise alongside the price.
Chung emphasized: "Under more conventional market conditions, if traders were leveraged into establishing new long positions, we would expect to see an increase in futures basis levels. This reminds us that not all rallies are driven by new demand—sometimes they reflect market repositioning and risk adjustments."
Weak capital inflows into spot Ethereum ETFs listed in the U.S. further support this view, with only ten net-inflow trading days over the past four weeks, and just one day exceeding $100 million. These market indicators collectively suggest that the current rise in Ethereum prices lacks strong backing from new demand and institutional investors.
