Is Ethereum worth chasing the rise after upgrading?

After major upgrades such as the Ethereum merger, currency price fluctuations have affected investors' hearts, and chasing the rise has become a hot topic. This article aims at users who trade on platforms such as Binance, OKX, and Gate.io, and explains in detail the pros and cons of chasing the rise after Ethereum upgrade. Although there is a chance to make quick profits when chasing the rise, risks such as pullback risks, risks such as chasing the rise and sell-offs, and information lag cannot be ignored. Therefore, it is necessary to comprehensively evaluate multi-dimensional factors such as upgrading effects, market sentiment, technical indicators and capital flow, and make prudent decisions. This article will provide trading strategies and risk management suggestions on different platforms to help investors invest rationally in the Ethereum market, reduce risks, and strive to make long-term profits. Remember: Investment is risky, so be cautious when entering the market.

The upgrade of Ethereum (ETH), especially milestone upgrades like "merger", are often accompanied by market excitement and expectations. The upgraded price trend has become the focus of investors' attention. So, is it worth chasing the rise after Ethereum upgrade? No matter which platform you are trading on Binance, OKX, or Gate.io, this article will provide you with a decision-making guide to help you weigh risks and seize potential investment opportunities.

1. Temptation and risk of chasing the rise

Chasing the rise means buying in the price upward trend and hoping to continue to make profits. After Ethereum upgrades, if the market sentiment is optimistic and the price continues to rise, chasing the rise will undoubtedly be attractive.

• The temptation to chase the rise:

  • Fast profit: If the judgment is correct, you can get considerable returns in a short period of time.
  • Follow the trend: Follow the market trend and make profits easier.

• Risk of chasing the rise:

  • Callback risk: After the price rises to a certain level, a pullback may occur, resulting in losses.
  • Chasing the rise and selling the fall: If market sentiment suddenly reverses and prices fall sharply, those who chase the rise may be trapped.
  • Information lag: Those who chase the rise are often late and may have missed the best buying opportunity.

2. The basis for judging the rise after upgrading: multi-dimensional analysis

Before deciding whether to chase the rise, multi-dimensional analysis is needed to avoid blindly following the trend.

• Actual effect of upgrades: Evaluate whether the upgrade has achieved the expected goals and whether it has solved practical problems, such as improving scalability and reducing Gas costs. Only when the upgrade effect is significant can you achieve success by chasing the rise.
• Market sentiment: Observe whether market sentiment is positive and whether investors are generally optimistic about the future of Ethereum. Market sentiment can be judged through indicators such as social media, news reports, and trading volume.
• Technical indicators: Analyze the technical indicators of ETH, such as moving average, relative strength indicator (RSI), trading volume, etc., to determine whether there is overbought. If the technical indicators show that ETH is already in an overbought state, the risk of chasing the rise is higher.
• Capital flow: Pay attention to whether a large amount of capital flows into the ETH market, which is often an important driving force for price increases.
• Macro environment: Consider the impact of the macroeconomic environment, such as inflation, interest rate changes, etc. In the face of unstable macroeconomic environment, the risk of chasing the rise is relatively high.

3. Strategies for trading on different platforms

The tools and services provided by different platforms vary, so different strategies for chasing the rise:

• Binance:

  • Spot trading: If you think the ETH price will continue to rise, you can conduct spot trading on Binance and buy ETH. But you must set a stop loss point and control risks.
  • Contract Trading: If you are very confident about the rise in ETH price, you can use leveraged contracts to amplify your returns. However, contract trading risks are extremely high, so please be careful.
  • Binance Leveraged Tokens: You can consider using Binance's ETHUP leveraged tokens to get higher returns when the price rises, but you should also pay attention to the risks of leveraged tokens.
  • Leverage Trailing Stop Order: Binance’s trailing stop orders can help you lock in profits and limit potential losses.

• Ouyi (OKX):

  • Strategy Trading: Use Ouyi’s strategy trading features, such as tracking commissions, to automatically buy when prices rise.
  • Order trading: You can follow traders with excellent performance on the Ouyi platform and follow their trading strategies. But you should pay attention to the risks of following order trading, and you should choose a reputable trader.
  • OKX Earn: Some OKX Earn products may provide returns linked to ETH increase, and can be selected according to their own circumstances.

• Sesame Door Open (Gate.io):

  • Quantitative trading: Sesame Open Door provides quantitative trading functions, which can write programs to automatically track the ETH price and automatically buy when the conditions are met.
  • IEO: Pay attention to whether there are IEO projects related to ETH upgrades, participate in investment, and gain profits.

4. Choice of timing to chase the rise

The timing of chasing the rise is crucial. Not all rising markets are suitable for chasing the rise.

• Breakthrough resistance level: When the ETH price breaks through the key resistance level, it indicates that the upward trend is established and you can consider chasing the rise.
• Increase in volume: When the ETH price increases in volume, it indicates that the market participation is high and the upward trend is more likely to continue.
• The end of the callback: When the ETH price starts to rise again after a brief pullback, you can consider chasing the rise.

Avoid chasing the rise when:

• Prices have risen sharply: Avoid chasing the rise after the price has risen sharply, because the pullback risk is higher.
• Trading volume shrinks: If trading volume shrinks, it means that the upward trend may be unsustainable.
• News negative news: If negative news occurs, it may lead to a price drop, so it is not advisable to chase the rise.

5. Risk management: Protect your investment

Regardless of the strategy adopted, risk management is crucial.

• Set a stop loss point: Set a reasonable stop loss point to prevent losses caused by price decline.
• Control positions: Do not invest all funds in ETH, diversify investment and reduce risks.
• Don’t be overconfident: Even if you are very confident in market judgment, be cautious and don’t be overconfident.
• Understand the risk control mechanism of the platform: Each platform has different risk control mechanisms, and it is necessary to understand and make reasonable use to reduce transaction risks.

6. Conclusion: Make cautious decisions and act within your ability

There is no simple answer to whether Ethereum is worth chasing the rise after upgrading. It is necessary to comprehensively consider various factors such as the actual effect of upgrading, market sentiment, technical indicators, and capital flow. In any case, we must maintain a rational and cautious attitude, act within our ability, not blindly follow the trend, and not have the fantasy of "get rich overnight". The cryptocurrency market has high risks, so you need to be cautious when chasing the rise. Remember to manage risks well in order to survive in the market for a long time and make profits.

The above is the detailed content of Is Ethereum worth chasing the rise after upgrading?. For more information, please follow other related articles on the PHP Chinese website!