Crypto Index Firm Claims Ether Bears Are Finished, Powering Upward Momentum in ETH

CF Benchmarks CEO Attributes Ether’s Recent Rally to Short Covering, Not New Long Positions

Ether’s recent price rally, though significant, is primarily driven by short sellers closing their positions rather than new leveraged longs entering the market, according to Sui Chung, CEO of CF Benchmarks.

Since early April, Ether (ETH) has risen nearly 90%, surpassing $2,600. However, Chung told CoinDesk that the gains are largely the result of traders unwinding bearish futures contracts, which temporarily increases buying demand and pushes prices higher, rather than fresh bullish bets or institutional leverage.

Data from the Chicago Mercantile Exchange (CME)—a major hub for institutional derivatives—shows that the ether futures basis, which measures the premium of futures prices over spot prices, has remained relatively stable, hovering between 6% and 10% on an annualized basis for one-month contracts. This suggests that new long positions have not been driving the rally.

“In a typical bull run fueled by fresh longs, the futures basis would widen as traders take leveraged positions,” Chung explained. “Here, the steady basis indicates the price surge is mostly short covering.”

Some market watchers suggest that arbitrageurs could be suppressing the basis by shorting CME futures and buying ETH spot ETFs. However, inflows into U.S.-listed ETH spot ETFs have been limited, with positive net inflows on only ten trading days in the past month, and a single day exceeding $100 million, according to SoSoValue.

“The lack of significant ETF inflows, combined with a muted basis, reinforces the view that this rally isn’t driven by fresh leveraged longs,” Chung said.

Overall, while Ether’s price action appears strong, the underlying dynamics indicate the move is largely a technical rebound from short sellers covering their bets rather than a new wave of bullish enthusiasm.