Exponentially Weighted Moving Average (EWMA) is a statistical measure used to smooth out price data by giving more weight to recent observations. This is particularly useful for analyzing price trends and volatility.In practice, EWMA assigns a decay factor to past prices, meaning that the most recent price has the highest influence on the average, while older prices contribute less and less over time. This approach allows traders to spot trends more effectively, as it adapts quickly to recent changes in price movements.In the context of evaluating cryptocurrency prices, EWMA can help traders make decisions based on the latest price actions rather than being skewed by older data. For instance, if there is a sudden spike in price, the EWMA will reflect that change more rapidly compared to a simple moving average.Overall, EWMA serves as a valuable tool for traders seeking to understand market dynamics and make timely decisions based on current trends, improving the accuracy of their analyses and strategies.