Analysis of buy signal after Ethereum upgrade

After Ethereum upgrade, we will pay attention to technical signals such as price breaking through resistance levels, moving average golden cross and RSI indicators below 30, as well as fundamental changes in ecosystem activity and institutional investors' attitudes.

Apr 12, 2025 at 08:36 pm

As one of the top blockchain platforms, Ethereum is a major upgrade that affects the nerves of the entire cryptocurrency market. These upgrades usually bring about improved network performance, security enhancements, and new application scenarios. So, how to interpret market signals after Ethereum upgrade, seize the opportunity to buy, and realize investment returns? This article will explain it in detail for you.

Disclaimer: The cryptocurrency market is extremely volatile. The following analysis is for reference only and does not constitute any investment advice. Be sure to make investment decisions based on your own risk tolerance.

1. The importance of Ethereum upgrade

The upgrade of Ethereum is not just a technological improvement, but has a far-reaching impact on the entire ecosystem:

• Performance improvement: Upgrades usually increase transaction speed and reduce transaction fees, thereby improving user experience and attracting more users.

• Security enhancement: Upgrades may fix vulnerabilities, enhance network attack resistance, and improve platform security.

• New application scenarios: Upgrades may introduce new technical features, such as sharding, Layer 2 solutions, etc., bringing more possibilities to applications such as DeFi, NFT, and GameFi.

• Market sentiment: A successful upgrade will increase the market's confidence in Ethereum and attract more capital inflows.

2. Buy signal after Ethereum upgrade

After Ethereum upgrade, investors can find buy signals through the following aspects:

Technical indicator analysis:

• Price breaks through resistance: If Ethereum price successfully breaks through key resistance levels after upgrading, such as the previous high or Fibonacci pullback, this may be a buy signal.

• Moving average golden cross: The short-term moving average crosses the long-term moving average upward to form a golden cross, which is usually regarded as a bullish signal. For example, the 50-day moving average crosses the 200-day moving average upwards.

• RSI indicator: The relative strength index (RSI) is below 30, indicating that Ethereum may be oversold and has the potential to rebound.

• MACD indicator: The MACD indicator has a gold cross, indicating that Ethereum may enter an upward trend.

Fundamental analysis:

• Ecosystem development: Observe whether the Ethereum ecosystem is more active after the upgrade, and whether there are new progress in DeFi projects, NFT projects, GameFi projects, etc.

• Growth of users: Pay attention to data such as the number of active addresses and transactions on the Ethereum network. These data reflect the user's participation and network activity.

• Institutional Investor Attitude: Pay attention to institutional investors' views and actions on Ethereum, such as whether to increase their holdings in Ethereum and whether to launch Ethereum-related investment products.

• Market sentiment: Pay attention to social media, news media and other channels to understand the overall market sentiment towards Ethereum upgrade.

On-chain data analysis:

• Exchange funds flow: If a large amount of funds flow out of the exchange and enter personal address, it may mean that investors are optimistic about the future of Ethereum and choose to hold it for a long time.

• Gas fees are reduced: After the upgrade, if the Gas fees on the Ethereum network are significantly reduced, it means that the network congestion has been alleviated and the user experience has been improved, which may attract more users to participate.

• Improved network activity: Pay attention to data such as block generation speed, transaction number and other data on the Ethereum network, which reflect the activity level of the network.

3. Risk warning

• Market volatility: The cryptocurrency market is extremely volatile, and even if there is a buy signal, there is a risk of price decline.

• Risk of upgrade failure: While Ethereum upgrades usually go smoothly, there is still a risk of upgrade failure, which can lead to a sharp drop in prices.

• Regulatory policy risks: There is uncertainty in government regulatory policies on cryptocurrencies, which may have an impact on Ethereum’s prices.

4. Summary

Ethereum upgrade is an important opportunity for investment, but it is necessary to comprehensively evaluate market signals in combination with technical analysis, fundamental analysis and on-chain data analysis. At the same time, be sure to pay attention to risk control and invest according to your own risk tolerance. I wish you success in the world of Ethereum!