How to avoid chasing high risks after Ethereum upgrade

Strategies to avoid high risks after Ethereum upgrade include: 1. Calm analysis, rational judgment, avoid emotional trading, think independently, and comprehensively evaluate the impact of upgrades; 2. Pay attention to long-term value, avoid short-term speculation, and achieve through value investment and not pursuing short-term high returns; 3. Use technical indicators such as RSI, MACD and moving averages to assist judgment, but they cannot be completely relied on; 4. Buy positions in batches, reduce risks, and achieve by buying in batches, buying on dips and buying regularly; 5. Set stop loss points, control risks, protect principal and adjust stop loss points according to volatility; 6. Pay attention to market dynamics, adjust strategies in a timely manner, pay close attention to official announcements and market sentiment, and adjust trading strategies according to actual conditions.

The upgrade of Ethereum (ETH) can always attract market attention and bring potential profit opportunities. However, short-term rises after upgrading are often accompanied by the risk of chasing highs, especially for novices, blindly chasing rising prices can easily be trapped. This article will explain in detail how to avoid chasing high risks after Ethereum upgrade, analyze rationally, and enter safely.

Important statement: The digital asset market is extremely volatile. This article is only information sharing and does not constitute any investment advice. Please make careful decisions based on your own risk tolerance.

1. Analysis of the causes of risk of chasing high

Before discussing how to avoid chasing highs, let’s first understand the root causes of chasing highs:

• FOMO (Fear Of Missing Out): Fear of missing out on rising opportunities, causing investors to lose control of their emotions and chase the rise irrationally.
• Information asymmetry: Retail investors often find it difficult to obtain timely and comprehensive market information and are easily influenced by market sentiment.
• Over-optimism about upgrading: Investors over-interpret the impact of upgrading and believe that ETH prices will continue to rise, thus blindly chasing the rise.
• Short-term profit mentality: eager to achieve success and hope to get high returns in the short term, resulting in investors losing their rational judgment.

Mainstream Bitcoin Exchanges in 2025:

Ouyi official website:

Binance official website:

gate.io official website:

bitget official website:

Sesame Open Door Official Website:

2. Effective strategies to avoid chasing high risks

1. Calm analysis, rational judgment:

• Avoid emotional trading: Before making decisions, calm down and analyze market conditions rationally, and do not be affected by FOMO emotions.
• Independent thinking: Don’t blindly believe in other people’s opinions, but have your own judgment and thinking.
• Comprehensively evaluate the impact of upgrades: Understand the specific content, expected effects and potential risks of upgrades, and do not over-interpret the impact of upgrades.

2. Focus on long-term value and avoid short-term speculation:

• Value Investment: If you are optimistic about the development prospects of ETH in the long run, you can consider holding for a long time and ignore short-term fluctuations.
• Don't try to seize all opportunities: Acknowledge that you cannot predict every volatility in the market, and don't pursue short-term high returns.

3. Technical indicators assist in judgment:

• Relative Strength Index (RSI): The RSI indicator can help you determine whether ETH is overbought. When the RSI exceeds 70, it means that ETH may be in an overbought state and there is a risk of a callback.
• Moving Average Convergence Divergence (MACD): The MACD indicator can help you determine the trend direction of ETH.
• Moving average: Observe the moving average trend of ETH, such as the 50-day moving average and the 200-day moving average.
• Note: Technical indicators are for reference only and cannot be fully relied upon.

4. Build positions in batches to reduce risks:

• Don't invest all your funds at once: Divide your funds into multiple parts and buy ETH in batches.
• Buy on dips: Buy when the price pulls back to reduce the average cost.
• Buy regularly: Regularly buy a certain amount of ETH regardless of price fluctuations, such as weekly or monthly.

5. Set a stop loss point to control risks:

• Protect principal: Set a stop loss point and automatically sell when the price falls to a certain level to avoid the loss from expanding.
• Adjust according to volatility: The setting of the stop loss point should be adjusted according to the volatility of ETH.

6. Pay attention to market trends and adjust strategies in a timely manner:

• Pay close attention to the official announcement of Ethereum: keep abreast of the progress of the upgrade, potential problems, etc.
• Track market sentiment: Pay attention to social media, news media and other channels to understand the overall market sentiment towards ETH.
• Adjust trading strategies according to actual conditions: If the market situation changes, adjust your trading strategy in a timely manner.

3. Summary

The market after Ethereum's upgrade is full of opportunities, but it is also accompanied by the risk of chasing highs. Only by calm analysis, rational judgment, and adopting a steady strategy can we survive and develop in the digital asset market for a long time. Remember, risk control is always the first priority. I wish you a smooth investment!

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