#Gate广场征文活动第二期 #ERA

$ERA
First, investigate the project's fundamentals:

ERA is the native currency of the Caldera ecological system, with its value closely tied to the long-term developments of the project. Caldera focuses on the "Rollup as a Service (RaaS)" space, effectively targeting the core pain point of the Ethereum network, which is high transaction costs and slow processing speeds - by executing a large number of transactions off-chain and then aggregating them before submitting them to the Ethereum mainnet, significantly enhancing transaction efficiency while also greatly reducing transaction fees. This technical approach not only aligns with the urgent demand in the blockchain industry for Layer 2 solutions but also has clear application scenarios.

In terms of project support, most members of the Caldera team come from major tech companies and well-known academic institutions, and they have a strong background in technology development and promotion; in addition to investments from many well-known investment institutions, providing stable assurance for the continuous development of the project and the building of the ecosystem. This technological strength + financial support forms an important dual support for the long-term value of the ERA token, and it also establishes the fundamental basis for its price direction.

Secondly, perspectives on market direction:
From a 4-hour perspective, the price trend of ERA is very good, and the recent price pullback is considered just a small correction and has not affected the overall bullish structure. The current price is still above the trend line and shows a characteristic of "higher highs and higher lows", which is a typical signal for the continuation of the bullish trend, indicating that the bullish strength remains dominant.

The EMA20 ( $1.41 ) and EMA50 ( $1.36 ) moving averages form a strong dynamic support zone, as the price heavily relies on these two averages during corrections, providing bulls with a clear defensive position.
The current RSI indicator is close to 60 and has not yet entered the overbought zone, which means there is room to unleash short-term upward momentum, and there is no need for excessive concern about interim correction pressure.
The trading volume has recently maintained its stability and aligned positively with the price trend, indicating that the market is significantly recognizing the current upward trend, and buying pressures continue to rise.

In the past thirty minutes, a "false breakout that attracts many then quickly returns down" has appeared, which is a common method used by the strong in an upward trend to clean up floating stocks through intense short-term volatility, easing resistance against the subsequent highs. Currently, the price has returned to the main establishment zone, and all indicators are gradually recovering, with new breakout events in preparation.

Thirdly, the entry strategy for the signal:

Based on the current technological framework, it is proposed to set a plan in the range of $1.47 – $1.52.

Return to entry: If the price retraces to this area and receives support from EMA20, buying positions can be built in installments.
Backtest breakout: If the price breaks the resistance level of $1.52 and then bounces back for confirmation, this is considered a strong entry signal, and positions can be increased accordingly.

Short-term target: $1.60 - $1.65 ( aligns with the upper resistance level of the channel, attention should be paid here to whether trading volume can accompany the breakout ).
Medium target: More than $1.75 ( After surpassing the short-term target, the room for further upside will open up, and previous high points are expected to be challenged ).
The stop-loss level is set below $1.42. Once the price effectively drops below this level, it indicates that the short-term bullish structure may be at risk of being destroyed, and one should exit decisively to avoid the risk of decline.
The position size should be controlled at 10%-20% of the total capital to avoid significant risks in the account resulting from short-term fluctuations, while keeping capital available to take advantage of potential opportunities to increase positions.
Trading volume changes should be closely monitored when breaking above $1.52. If there is an increase in volume at the breakout, this indicates bullish strength, increasing the likelihood of reaching the target level.
If the price faces resistance and drops in the range from $1.60 to $1.65, some profitable positions can be reduced while maintaining the core positions to monitor the continuity of the trend.
The technological progress and the development of the Caldera ecosystem must be monitored mid-term, and if the project implementation is below expectations, the medium- and long-term retention strategy should be adjusted in a timely manner.
ERA is currently in a phase of alignment between "fundamental support + an optimistic technical outlook", with strict risk control measures in place. Opportunities for planning can be leveraged within the range of $1.47 - $1.52, relying on the trend and support levels to gradually provide a trading plan.
Gate has launched the Caldera Environment Week event, and participating in the event may lead to the distribution of ERA tokens. Click below to see the event details: https://www.gate.com/announcements/article