Recently, the cryptocurrency market seems to have entered a whole new chapter. The former "digital gold" Bitcoin seems to be experiencing a deep rest, with its price fluctuation significantly narrowing and its market attention is slightly dull. In sharp contrast, Ethereum is becoming the focus of the market with its amazing vitality. From technical charts to on-chain data, to innovative activities around the Ethereum ecosystem, all reveal a signal that market momentum is quietly shifting. This transfer is not only a simple capital flow, but also a deep narrative transformation and technological innovation driven by. Investors and analysts are watching this phenomenon closely: Does Ethereum's activity heralds a new era that is about to come? How should we understand the logic and potential impact behind this "Bitcoin sleeps and Ethereum is active"?

Ethereum price trend analysis: Multi-dimensional data reveals upward potential

It is no coincidence that Ethereum's price trend has shown a significant upward trend in recent days. From a macro perspective, the uncertainty of the global macroeconomic environment has caused investors to decline in interest in traditional safe-haven assets, and cryptocurrencies, as an emerging asset class, have attracted a lot of attention. Within cryptocurrencies, Ethereum is becoming the first choice for new capital inflows with its strong ecosystem and continuous technological upgrades. Although the merger of Ethereum 2.0 (now called The Merge) has been completed, its long-term impact on network sustainability and scalability is gradually emerging, reducing Ethereum's supply, thus providing strong support in the supply and demand relationship. In addition, Ethereum's deflation mechanism , namely the destruction of part of the transaction fees introduced by the EIP-1559 proposal, makes Ethereum an asset with inherent deflation attributes, which is an interesting contrast with Bitcoin's fixed supply model. On-chain data shows that the number of active addresses in Ethereum continues to grow , and the usage and transaction volume of DApps (decentralized applications) are also rising, which shows that the actual usage and demand of the Ethereum network are increasing.

The deep reason for the transfer of market momentum: Why Ethereum?

The market momentum is shifting from Bitcoin to Ethereum, and the reasons are complex and multi-dimensional. The narrative of Bitcoin as a "store of value" has been deeply rooted in people's hearts, but its risk-averse attributes are often challenged during periods of high volatility. In contrast, Ethereum's narrative is richer and more diverse. Ethereum is not just a cryptocurrency, it is also a global decentralized computer , carrying many cutting-edge applications such as DeFi (decentralized finance), NFT (non-fungible tokens), GameFi (blockchain games), and the metaverse. This powerful ecosystem effect makes Ethereum’s value not only depends on its token price, but also on its network effect and application value. Developer activities are the cornerstone of the prosperity of the Ethereum ecosystem . A large number of developers are building innovative applications on Ethereum, which has brought a steady stream of vitality and users to Ethereum. Although Bitcoin also has some Layer2 solutions, its core design concept focuses more on a single value transmission function. When the market begins to seek innovation and application scenarios, Ethereum's advantages are undoubtedly highlighted.

Understanding the role of Ethereum and Bitcoin: Complementary rather than replacement

Although market momentum is shifting toward Ethereum, this does not mean that Ethereum will completely replace Bitcoin. Instead, they play different and complementary roles in the cryptocurrency ecosystem. Bitcoin’s status as digital gold remains solid . It is the “first stop” for many institutions and individuals to enter the cryptocurrency world and an important indicator to measure the sentiment of the entire crypto market. Its scarcity, security and decentralization make it a preferred store of value in a long-term store of value. Ethereum is more like an operating system and application platform in a digital world , providing infrastructure and ecological support for various innovative applications. Investors can choose to configure different proportions of Bitcoin and Ethereum based on their risk preferences and investment goals. It may be a more comprehensive strategy to regard Bitcoin as a long-term asset allocation and Ethereum as a growth asset, capturing the dividends of its ecosystem development.

Technical Analysis: Key Indicators for Identifying Ethereum Price Trends

For investors, understanding Ethereum's price trend requires analysis based on a variety of technical indicators. Here are some key indicators and how to use when analyzing Ethereum price trends:

1. Moving Averages (MA):

• Function: Smooth price data and help identify trend directions. Commonly used are the Simple Moving Average (SMA) and the Exponential Moving Average (EMA).
• operate:
  • Open your trading platform or chart analysis tool.
  • Find the "Indicators" or "Technical Analysis" option.
  • Search for "Moving Average" and add it to Ethereum's price chart.
  • Different cycles are usually set, such as 50-day MA, 100-day MA, and 200-day MA.
  • When a short-term MA passes upward through a long-term MA (golden cross), it is usually considered a buy signal.
  • When a short-term MA passes down through a long-term MA (dead cross), it is often considered a sell signal.
  • The price runs above the moving average, indicating an upward trend; the price runs below the moving average, indicating a downward trend.

2. Relative Strength Index (RSI):

• Function: Measure the speed and amplitude of price changes and determine whether the assets are overbought or oversold.
• operate:
  • Add RSI metrics to the Chart Analysis Tool.
  • RSI values range from 0 to 100.
  • Typically, an RSI above 70 is considered an overbought area, which may indicate a price pullback.
  • RSI below 30 is considered an oversold area and may indicate a price rebound.
  • The divergence phenomenon of RSI is also worthy of attention: when the price hits a new high but the RSI fails to hit a new high (top divergence), it may indicate a weakening of the upward momentum; when the price hits a new low but the RSI fails to hit a new low (bottom divergence), it may indicate a weakening of the downward momentum.

3. Volume:

• Function: reflects the activity level of market participation and the intensity of trends.
• operate:
  • Trading volume is usually displayed below the price chart.
  • The upward trend is accompanied by amplification of trading volume, indicating strong momentum for upwards.
  • The downward trend is accompanied by amplification of trading volume, indicating a strong downward momentum.
  • Prices rise but trading volume shrinks, which may indicate weak rises.
  • Prices fall but trading volumes shrink, which may indicate a weakening of the downward momentum.

4. Bollinger Bands:

• Function: Measure the range and volatility of price fluctuations.
• operate:
  • Add Bollinger Bands metrics to the Chart Analysis Tool.
  • The Bollinger band consists of three lines: the middle rail (usually the 20-day SMA), the upper rail and the lower rail.
  • Prices usually fluctuate between upper and lower rails.
  • When the price hits the upper track, it may be overbought.
  • When the price hits the lower track, it may be oversold.
  • A narrowing of the Bollinger band usually indicates a big price fluctuation.
  • A price breakout through the Bollinger band usually indicates a continuation or reversal of the trend.

5. MACD (Moving Average Convergence/Diverance Indicator):

• Function: measure the relationship between two moving averages and identify buying and selling signals and trend changes.
• operate:
  • Add MACD indicators to the Chart Analysis Tool.
  • MACD consists of MACD lines, signal lines and MACD bar chart.
  • When the MACD line passes through the signal line (golden cross), it is usually considered a buy signal.
  • When the MACD line passes under the signal line (dead cross), it is usually considered a sell signal.
  • The MACD bar chart shows the distance between the MACD line and the signal line, and the growth or contraction of the bar chart indicates changes in kinetic energy.

Centralized exchange ranking

Choosing a safe and reliable exchange is the cornerstone of cryptocurrency trading. Here are the top three centralized exchanges in the market:

1. Binance

• The world's largest cryptocurrency trading platform.
• Offers a wide range of cryptocurrency trading pairs.
• Very high liquidity and good trading depth.
• There are rich product lines, including spot, contracts, financial management, etc.

2. OKX (Ou Yi)

• A world-renowned cryptocurrency trading platform.
• Provide diversified financial products.
• Have a strong technical infrastructure.
• Good performance in terms of user experience and security.

3. Huobi (Huobi)

• Asia's leading cryptocurrency exchange.
• Have a huge user base.
• Provide spot and derivatives trading services.
• Actively explore compliance.

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