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CME Exchange Data Reveals Ether’s Rally Driven by Short Covering, Not Bullish Conviction
CME Exchange Data Reveals Ether’s Rally Driven by Short Covering, Not Bullish Conviction
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CME exchange News -
Ether’s recent price surge appears to be fueled more by technical factors than fundamental optimism. Market analysts attribute the move primarily to short covering—the unwinding of bearish bets—rather than fresh institutional demand or Leveraged long positions.
"This isn’t the hallmark of a sustained bull run," noted sui Chung of CF Benchmarks, pointing to muted activity in CME’s institutional-focused derivatives. The futures market’s tepid premium suggests professional traders remain cautious despite ETH’s upward momentum.
Short covering creates artificial demand as bears repurchase contracts, potentially distorting true market sentiment. The phenomenon often precedes volatility as positions reset.
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