Short Covering Fueled Ethereum Price Surge, Says CF Benchmarks CEO

CF Benchmarks CEO Sui Chung suggests that the recent surge in Ethereum’s price is primarily driven by short covering rather than new bullish investments. According to Odaily, Mr. Chung pointed out that the CME Ethereum futures premium remains low and there hasn’t been a notable influx of capital into U.S.-listed spot Ethereum ETFs. This indicates that the current price increase is largely attributed to traders closing their short positions instead of active investment by institutional entities.