ETHPoW’s 70% rise may excite traders, but is the upside here to last

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ETHW wit­nessed a rise of over 70% in the last sev­en days as per data from Coin­base. Although the alt wit­nessed a drop over 9% over the pre­vi­ous 24-hours, this still rep­re­sent­ed an impres­sive run for the asset. 

ETH proof-of-work (PoW) also con­tin­ued its stride to becom­ing a viable fork with KuCoin announc­ing its list­ing on its exchange. With KuCoin’s announce­ment, the num­ber of exchanges ETHW can now be trad­ed is grad­u­al­ly expand­ing. In a relat­ed devel­op­ment, OkLink also announced the release of API sup­port for ETHW.

A Look At ETHW’s price movement 

ETHW opened trad­ing on 27 Sep­tem­ber at $11.10 and closed at 11.18, reach­ing a high of $12.02 in the same trad­ing peri­od. As of the time of writ­ing, it was trad­ing at around $10, a loss of over 5% already. 

Fur­ther­more, the trend lines shown below point towards an obvi­ous uptrend in price actions in both the dai­ly and six- hour time frame. The vol­ume indi­ca­tor, how­ev­er, depict­ed low trad­ing vol­ume, indi­cat­ing a lack of intense activ­i­ties in terms of trade. The dis­par­i­ty between the uptrend in price and the drop­ping vol­ume sig­ni­fied a diver­gence in price and volume.

Source: Trad­ingView

Traders’ inter­est in the ETH­PoW token appeared to be wan­ing as there is a widen­ing gap between the token’s ris­ing prices and drop­ping trad­ing vol­umes. The impli­ca­tion of this is that ETHW’s price could expe­ri­ence a severe drop in the days ahead. 

The Rel­a­tive Strength Indi­ca­tor (RSI) in the six-hour time frame showed that ETHW was a lit­tle over the neu­tral line, indi­cat­ing a weak bull­ish trend. The Direc­tion­al Move­ment Index (DMI) fur­ther showed the sig­nal and DI line over 20 also indi­cat­ing a weak bull­ish trend. 

Look­ing at the RSI and DMI in the dai­ly time­frame, how­ev­er, showed that the over­all trend was still strong­ly bearish.

Source: Trad­ingView

On the other hand…

The hash rate appeared to be on the rise as per 2miners.com. This con­firmed an improve­ment from where it was before. How­ev­er, it still remained 40% low­er than its all-time peak of 79.42 TH/s. 

An increase in the ETH­PoW network’s hash rate indi­cat­ed that more min­ers have joined the net­work since it forked off from the Ethereum proof-of-stake (PoS) chain. 

Source: 2Miners

Aside from the rise in the hash rate, ETHW also saw a rise in the net­work dif­fi­cul­ty. The rise in net­work dif­fi­cul­ty was anoth­er indi­ca­tion of the expand­ing pop­u­la­tion of net­work miners.

Source: 2Miners

The increase in min­ers as indi­cat­ed by the increase in hash rate and net­work dif­fi­cul­ty can be con­sid­ered as a good sign for the net­work. It still remains to be seen, how­ev­er, how viable the net­work will be, con­sid­er­ing estab­lished alter­na­tives like Ethereum Clas­sic in the mix. 



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