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« Volatility of the cryptocurrency market: Technical analysis of the technical evaluation and risks of the Ethereum Machine »
The cryptocurrency market has experienced significant volatility in recent years, and prices have been floating quickly between the downs. The key factor that contributes to this volatility is the technical evaluation, which includes analysis of graphs and samples to determine the potential value of the cryptocurrency. In this article, we examine how the technical evaluation can be applied to the risks of Ethereum virtual machine (EVM).
Technical evaluation
Technical evaluation is the process of analyzing historical floods and graphical patterns to determine the potential value of the cryptocurrency. This includes evaluation of factors such as market capitalization, negotiation quantity and price pulse to create a technical indicator that reflects the internal value of the cryptocurrency. Some general technical indicators used in cryptocurrency analysis are as follows:
- Mobile Averages : These are lines that connect two points on a graph, the long -term line (eg 50 periods) indicate the general trend.
- Relative Strength Index (RSI) : This measures the size of recent price changes to determine excessive or surface sales.
- Bollinger bands : They represent an interval between the two moving averages, each serving as a volatility band.
Virtual Machine Risk Ethereum
EVM is a critical component of many decentralized applications (Dapps), and its safety and functionality is essential to keep the user’s confidence in blockchain -based services. At the same time, like all technological systems, it can be vulnerable for computer threats and exploitation. Some possible risks associated with EVM include:
- Vulnerability of the smart contract : If the smart contracts of the Ethereum network is not controlled or properly, they may introduce vulnerabilities that allow hackers to be discovered.
- Complexity of the Transaction
: The complexity of Ethereum transactions can make it difficult to understand and implement inexperienced users that lead to the risk of increased errors or exploration.
- Interoperability Issues : The lack of EVM’s native gas system means that many dapp depends on external services that may be vulnerable to hacks or other attacks.
Voatity
The market volatility of the cryptocurrency is the main factor of space fluctuations. Market participants are constantly looking for risk management returns and investment strategies. Some general methods to handle investors with the risks:
- Position Measurement : Investors divide some of their portfolio into different cryptocurrencies and the risks are distributed in various assets.
- Diversification : Investors try to diversify their portfolio, actively distinguish between different classes or active sectors.
- Stop Lows applications : Investors use STOP orders to limit possible losses in the case of a market slowdown.
Technical analysis and EVM risks
In terms of technical evaluation, investors can analyze graphs and standards to determine whether the cryptocurrency is overestimated or undervalued. This may include:
- Graph Samples Recognition : Investors recognize graphs such as head and shoulders, triangles or other formations that indicate a possible price translation.
- Analysis of market trends : Investors analyze market trends to determine that the current trend is sustainable in the long run.
However, investors should be careful if technical analyzes are used for the EVM risk as follows:
- Lack of Context : Technical analysis clearly understands the wider context of the market, which can be a challenge for inexperienced investors.
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