1. Is the challenge and diversion from other public chains the main factor causing the decline of Ethereum? Has there never been such a serious deviation between Ethereum and Bitcoin in the past?

I think the main reason for the decline in the price of Ethereum can be attributed to two points:

First, there has been no significant application innovation in the Ethereum ecosystem during this trend.

Second, attention from Ethereum has been diverted by innovations or hotspots in other blockchains.

Regarding the first point, some readers may say that during this trend, Ethereum has introduced innovations such as re-staking and second-layer scaling. Doesn't this count as significant innovation?

In my opinion, these innovations are indeed innovative, but they are all infrastructure innovations, not application-side innovations. Infrastructure innovations are targeted at niche user groups, while application-side innovations can reach a wide range of users and trigger rapid growth in the ecosystem.

During the previous bull market, the DeFi, NFT, and blockchain gaming in the Ethereum ecosystem were very typical examples of application-side innovation. Especially NFT, it almost attracted a large number of users to the Ethereum ecosystem in a low-threshold manner.

However, at least up to now, 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 meme coins like Solana.

The growth of these blockchain ecosystems has created significant wealth effects 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 sluggish in the long term.

2. What position is suitable for layout if still in a short position now?

At this point, if you are still in a short position but want to make some moves, I think it might be a bit awkward because it feels like "neither here nor there."

In this regard, my suggestion is:

Either continue to stay in a short position and refrain from buying any coins regardless of what happens next, forcing yourself to calmly observe everything that happens next, and then reflect on what mistakes you made in this round and where your operations were inappropriate.

If you don't want to stay in a short position, only buy Bitcoin and Ethereum, which is a relatively safe and controllable approach. However, buying Bitcoin and Ethereum now, even if you wait for the peak of the bull market, the returns are likely to be very limited. Therefore, it will be very difficult to lock in profits as much as possible with this kind of operation.

3. The Magic token, which doubled in value a while ago, has now dropped to 0.6 after 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 dollar-cost averaging (including Magic) have been sold, and I will not sell them now. As I have written in my articles multiple times, as long as their teams do not encounter major issues, I will patiently wait until the bull market arrives to cash them out.

As for whether this major drop is 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 handle this type of fluctuation.

Why?

Because if I follow my method, I will:

First, determine 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 entered a bull market yet, 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 not continue to dollar-cost average. I will also not buy any other coins for dollar-cost averaging. 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 market fluctuations in our pre-set operations, when these fluctuations occur, we just need to follow the set operations.

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