Today, the Ethereum community exploded! Ethereum co-founder Vitalik publicly stated that Ethereum needs to simplify its protocol in order to enhance users' "decentralization" experience. As soon as the news broke, the community was filled with discussions: "Will simplifying the protocol lead to centralization?" "Is Ethereum giving up on complex features?" "Is this good or bad for ETH prices?" As an analyst who has been tracking the Ethereum ecosystem for many years, I can responsibly say: Vitalik's call is an inevitable trend in Ethereum's development, but there are 2 pitfalls to avoid and 1 core opportunity to seize!
First, let me interpret Vitalik's core intention: it is not to abandon the decentralization of Ethereum but to make Ethereum more practical. The protocol of Ethereum is becoming increasingly complex, making it difficult for ordinary users to understand and participate in the maintenance and verification of the network, which in turn reduces the trustlessness of the network. If only a few professional teams can understand and maintain the protocol, what is the difference from a centralized platform? Vitalik's call for protocol simplification is to allow more people to participate, enhance the decentralization of the network, lower development costs, and attract more projects to join.
Next is a guide to avoid pitfalls; these 2 pitfalls must be avoided! The first pitfall is not to be scared by the news of "protocol simplification" and think that Ethereum is failing, blindly selling ETH. The protocol simplification is meant for better development, not to abandon core functions. The core value of Ethereum lies in its decentralized ecosystem; as long as the ecosystem exists, the value of ETH will not disappear. Blindly selling will only make you lose your chips at low prices. The second pitfall is not to blindly chase the "Ethereum simplification concept coins." There will definitely be many projects trying to ride the wave, claiming their technology aligns with the trend of "protocol simplification"; most of these projects are air coins, aimed at scamming investors. Everyone should remember that only upgrades to the Ethereum mainnet and core ecosystem projects are worth paying attention to.
The core opportunity is to focus on the "lightweight applications" and "user-friendly projects" within the Ethereum ecosystem. After the protocol simplification, the development threshold of Ethereum will be lowered, and more developers will create lightweight applications suitable for ordinary users. These applications do not require users to have professional cryptographic knowledge to use them easily, and they are likely to become the next explosive point in the Ethereum ecosystem. Everyone can pay attention to projects that focus on optimizing user experience and developing lightweight DApps, as these projects will benefit first from the protocol simplification.
Regarding the trend, my view is: in the short term, Ethereum will experience fluctuations due to this news, but it is unlikely to change the overall pattern of following Bitcoin; in the long term, protocol simplification will enhance Ethereum's ecological competitiveness and bring structural opportunities. From a technical perspective, Ethereum's key resistance level is currently at $2915, and the support level is at $2780. If it can stabilize above $2915, it may test the neckline level of $3000-3060; if it cannot stabilize, it is likely to continue to adjust. The trend of Bitcoin is still the core; only when Bitcoin breaks through the key resistance level can Ethereum have an independent market.
Old friends know that I previously accurately predicted the market after the Ethereum Shanghai upgrade, advising everyone to buy ETH at $1800 and sell at $2400, making a decent profit. This time is the same; don't be influenced by short-term fluctuations; focus on long-term valuable ecosystem projects. I will conduct a detailed analysis of high-quality lightweight application projects in the Ethereum ecosystem and prepare a detailed research report. Follow me to receive it directly in the next sharing.
Finally, a reminder to everyone: the development of Ethereum is always advancing through "iterative upgrades"; the protocol simplification is not the end, but a new starting point. If you find this content useful, please like and follow so you don't get lost@币圈罗盘 #比特币流动性 $BTC $ETH
