CF Benchmarks Says "Ethereum Price Was Pushed Higher by Bears", Explains What's Needed for Rally to Continue!

While the largest altcoin Ethereum ($ETH) has attracted attention with its tremendous rise in recent days, there are various ideas about the reasons behind this rally.

While some analysts stated that the $ETH price rose due to increasing institutional demand, CF Benchmarks argued that the increase in $ETH was not due to new institutional demand, but rather the closing of short positions.

Ethereum’s recent price rally is being driven by the closing of short positions rather than new bullish bets or new long positions, according to Sui Chung, CEO of UK-based crypto index provider CF Benchmarks.

The sharp upward move in Ethereum’s price began after a sell-off in early April, the CFBenchmarks CEO said, adding that data showed limited inflows into spot Ethereum ETFs and a low CME futures premium.

According to Chung, these figures, which remain low alongside the rise, show that the rise is not supported by new demand and new long positions.

Chung lastly said that Ethereum’s gains could fade unless new bulls and longs enter the market. Although the closing of short positions has pushed the $ETH price above $2,600, Chung argued that ETF inflows or long transactions need to increase to sustain these levels.

*This is not investment advice.