Trading strategies and techniques after Ethereum upgrade

Every major upgrade of Ethereum may bring new opportunities and challenges. Investors need to pay attention to market responses and formulate corresponding trading strategies, such as pre-layout, event-driven, etc., to seize the upgrade dividends.

Apr 11, 2025 at 10:21 am

Every major upgrade of Ethereum may bring new opportunities and challenges to the market. Smart investors will closely monitor the upgraded market reaction and formulate corresponding trading strategies to seize the dividends brought by the upgrade. This article will introduce in detail the commonly used trading strategies and techniques after Ethereum upgrade to help you gain an advantage in the market.

Important statement: The cryptocurrency market is volatile. This article is for reference only and does not constitute any investment advice. Be sure to make investment decisions based on your own risk tolerance.

1. Understand the core impact of Ethereum upgrade

Before formulating a trading strategy, you need to understand the core impact of the Ethereum upgrade:

• Network performance improvement: Upgrades usually increase transaction speed and reduce transaction fees, thereby improving user experience.

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

• Ecosystem expansion: Upgrades may introduce new technical features, bringing more possibilities to applications such as DeFi, NFT, GameFi, etc.

• Changes in market sentiment: Upgrading may increase market confidence in Ethereum and attract more capital inflows.

2. Ethereum’s upgraded trading strategy

1. Pre-layout strategy: Buy Ethereum in advance before upgrading, and wait for the price to rise after the upgrade is completed.

• Applicable scenarios: Applicable to investors who are full of confidence in the upgrade of Ethereum and believe that the upgrade will bring long-term benefits.

• Risk warning: There is a risk of price decline due to failure or lower than expected upgrades.

2. Event-driven strategy: During the upgrade process or after the upgrade is completed, trade according to the actual market reaction.

• Applicable scenarios: Suitable for traders who are good at observing market trends and responding quickly.

• Risk warning: We need to pay close attention to market information and adjust trading strategies in a timely manner.

3. Callback buying strategy: After upgrading, if the Ethereum price pulls back, you can buy on dips.

• Applicable scenarios: Applicable to investors who believe that Ethereum has good long-term prospects but may fluctuate in the short term.

• Risk warning: You need to judge the amplitude and time of the callback to avoid failure in buying at the bottom.

4. Trend tracking strategy: After upgrading, if the Ethereum price shows a significant upward trend, you can buy it with the trend.

• Applicable scenarios: Suitable for traders who are good at technical analysis and able to identify trends.

• Risk warning: You need to stop losses in time to avoid losses caused by trend reversal.

5. DeFi mining strategy: Take advantage of the opportunity to improve the performance of Ethereum network after the upgrade, participate in DeFi mining and earn profits.

• Applicable scenarios: Suitable for investors who are familiar with DeFi mining and have certain risk tolerance.

• Risk warning: You need to understand the risks of DeFi projects, such as smart contract vulnerabilities, liquidity risks, etc.

3. Transaction skills after Ethereum upgrade

1. Follow official information: Pay close attention to Ethereum's official announcements to understand the specific content, timetable and potential risks of the upgrade.

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

3. Use technical analysis tools: use K-line charts, moving averages, MACD and other technical indicators to analyze the price trend of Ethereum to assist in judging the timing of buying and selling.

4. Control positions: Control positions reasonably based on your own risk tolerance and avoid excessive investment.

5. Set stop loss: Set the stop loss point and automatically sell when the price falls to a certain level to avoid the loss from expanding.

6. Flexible response: The market is unpredictable, and trading strategies need to be adjusted in a timely manner according to actual conditions.

4. Risk warning

• Market volatility: The cryptocurrency market is extremely volatile, and even if an effective trading strategy is adopted, there is a risk of loss.

• 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.

5. Summary

The upgrade of Ethereum has brought new opportunities for traders, but it also comes with risks. Only by fully understanding market trends and mastering effective trading strategies and techniques can you gain an advantage in the market. I wish you a smooth transaction!