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CME Exchange Data Shows Ether’s Rally Driven by Short Covering, Not Bullish Momentum
CME Exchange Data Shows Ether’s Rally Driven by Short Covering, Not Bullish Momentum
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CME exchange News -
Ether’s recent price surge appears to be fueled more by the unwinding of bearish positions than new bullish conviction, according to Sui Chung, CEO of crypto index provider CF Benchmarks. The rally stems primarily from short covering—traders closing out negative positions—rather than institutional leverage or fresh long contracts on CME.
CME’s derivatives, favored by traditional finance players, track CF Benchmarks’ Bitcoin Reference Rate. Short covering creates temporary demand spikes as bears buy back sold futures contracts. Chung notes the CME futures premium remains subdued, suggesting cautious institutional participation despite ETH’s upward move.
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