The challenge and diversion posed to Ethereum by other public chains, is this the main reason for the decline in Ethereum’s price? Has there never been such a serious deviation between Ethereum and Bitcoin in the past?
I think the main reason for the decline in Ethereum’s price can be attributed to two factors:
First, there hasn’t been any significant innovation in the application aspect of the Ethereum ecosystem in this round of trend.
Second, other blockchains have diverted attention from Ethereum in terms of innovation or hotspots.
Regarding the first point, some readers may argue that in this round of trend, Ethereum has introduced innovations such as re-staking and second-layer expansion, isn’t this considered significant innovation? In my opinion, while these innovations are indeed innovative, they are all infrastructure-based innovations, rather than application-based innovations. Infrastructure-based innovations target a niche user group, while application-based innovations can reach a wider user base and trigger rapid growth in the ecosystem. In the previous bull market, DeFi, NFT, and chain games in the Ethereum ecosystem were very typical examples of application-based innovation. Especially NFT, it attracted a large number of users to the Ethereum ecosystem in a low-threshold manner. However, Ethereum has been lacking in this aspect in this round. As for the diversion of attention from Ethereum by other blockchains, the most typical examples are the rise of the Bitcoin ecosystem and the emergence of Solana meme coins. The growth of these blockchain ecosystems has created a huge wealth effect in the short term, diverting a large number of users and hotspots from the Ethereum ecosystem. However, in the long run, I am not worried about these issues, because I firmly believe in the creativity and vitality of the Ethereum ecosystem, and I also believe that the price of Ethereum will not remain in a downturn for long.
Now, if you are still in a short position and want to make some moves, I think it might be a bit awkward because it feels like being “neither here nor there.” My suggestion is: either continue to stay short, and do not buy any coins no matter what happens next, force yourself to calmly observe everything that happens next, and then reflect on what mistakes you have made in this round, and where your operations were inappropriate. If you don’t want to stay short, just buy Bitcoin and Ethereum, which is a relatively safe and controllable method. But buying Bitcoin and Ethereum now, even if you wait for the climax of the bull market, the returns are estimated to be limited. Therefore, it will be very difficult to lock in profits as much as possible with this kind of operation.
The Magic at 0.78 doubled a while ago, and now it has dropped to 0.6 in this big drop. Should I continue to hold it? Also, is this a major drop before or after the halving?
So far, none of the coins I have been investing in (including Magic) have been sold, and they won’t be sold now. As I have mentioned in my articles many times, as long as their team does not encounter major problems, I will patiently wait until the bull market arrives before cashing them out. As for whether this major drop is the last major drop before or after the halving, I guess the reader wants to ask if this drop is the last major drop before or after the halving? If this is what the reader wants to ask, I can only say that I cannot predict such fluctuations, but I can completely cope with such fluctuations. Why? Because according to my method, I will: first judge whether the market has entered a bull market. If it has not entered a bull market, then continue to operate according to the strategy we set during the bear market. If it has entered a bull market, then operate according to the selling strategy I set during the bull market. According to my standards, the market has not yet entered a bull market, so I will continue to operate according to the strategy I set during the bear market: because Bitcoin and Ethereum have already passed the dollar-cost averaging price, I will no longer do dollar-cost averaging. I will also not buy any more of the other coins I have been investing in. Then, with the remaining funds, I will occasionally buy some that I like and find valuable. So, as long as we have made arrangements for the market’s fluctuations in advance, when these fluctuations occur, we just need to follow the set operations.
