RSI above 70 suggests Ethereum might be overbought, signaling a possible price pullback. MACD crossovers—when the MACD line crosses the signal line—can confirm a shift in momentum, offering clues about whether Ethereum is likely to continue rising or face a correction.
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Layer 2 solutions are protocols built on top of existing blockchains (Layer 1) to enhance their scalability, speed, and transaction throughput. These solutions aim to offload the transaction burden from the main blockchain, reducing congestion and high fees. Common Layer 2 solutions include state channels (like the Lightning Network for Bitcoin), rollups (such as Optimistic and ZK-Rollups for Ethereum), and sidechains. By processing transactions off-chain and settling final results back on the main chain, Layer 2 solutions increase transaction efficiency without compromising security. They are crucial for enabling mass adoption of blockchain applications, as they help networks handle more transactions per second (TPS) and lower costs, making decentralized applications more accessible and usable.
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Blockchain transparency allows for real-time monitoring of transactions, token distribution, and the project’s use of funds. This visibility lets investors verify if funds are being spent according to the project's whitepaper and roadmap. For example, tracking token supply can help identify potential market manipulation if a large portion is held by a few wallets. If there are any suspicious activities, such as sudden, unexplained movements of funds, these can serve as red flags. Transparent blockchains make it easier to assess a project's integrity, ensuring greater trust and reducing the likelihood of fraud.
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