Why is Ethereum Sideways (Why Ethereum is Mined)

Why is Ethereum sideways? Why does Ethereum consolidate when the market is experiencing a strong downtrend? This is because of the low market sentiment. When Ethereum prices fall, investors usually choose to wait and observe or enter the market after the market strengthens.

The reason Ethereum is able to maintain this kind of trend is because it has sufficient funds to support its price rise and sustain continuous growth. If Bitcoin’s price continues to break downwards, it means that it may reenter an upward trend in the next week or two, but this adjustment will not affect the Ethereum price. On the contrary, over time, Ethereum will return to a bullish market and continue to reach new highs. Therefore, in the next few months, we may see Ethereum consolidate for a period of time, then attempt to break through the resistance level during the retracement process, gradually stabilize at this level during the volatility, and form a new low point and new target price. Eventually, it will test the support level near the previous high point, allowing more people to profit and exit.

Why is Ethereum Mined

According to bitcoin.com, mining was already a process before the birth of Ethereum.

Ethereum operates through a consensus mechanism called Proof-of-Work (PoW), which is then transformed into Proof-of-Stake (PoS). This consensus mechanism is also known as Proof-of-Work (PoS) consensus protocol and is a branch of Bitcoin. Its main feature is that it uses blockchain technology to increase transaction confirmation speed by more than 50%. When the block rewards generated from this method are reduced by approximately half, they are sent to the network for verification and processing.