ETHW traders should know these updates before they go long

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Binance, a cryp­tocur­ren­cy exchange, announced that its users can par­tic­i­pate in a min­ing pool ded­i­cat­ed to Ethereum Proof of Work [ETHW]. Fur­ther­more, Binance on 29 Sep­tem­ber also announced that the ETHW pool would not require any fees until 29 October. 

When mul­ti­ple cryp­tocur­ren­cy min­ers wish to work togeth­er to increase their chances of suc­cess­ful­ly com­plet­ing a trans­ac­tion, they orga­nize min­ing pools to pool their resources.

How does this matter to ETHW?

The ETHW price move­ment has been on an upward trend in the last sev­en days. The Binance announce­ment only added to the ongo­ing surge. 

At the end of trad­ing on 29 Sep­tem­ber, ETHW had gained over 12%. It start­ed trad­ing at $10.691 and closed at $12.013. In the same trad­ing peri­od, it went as high as $12.938. Fur­ther­more, at press time, ETHW was trad­ing at around $12.3. 

Source: Trad­ingView

The resis­tance was at the $13.94 region while the new sup­port form­ing was at the $8.79 region. The Rel­a­tive Strength Indi­ca­tor (RSI) showed the trend was still bearish. 

The On-Bal­ance Vol­ume (OBV) showed low trade vol­ume, with a flat­ten­ing line. This too was indica­tive of a vol­ume price diver­gence. The devel­op­ment activ­i­ty as per San­ti­ment exhib­it­ed a decline and stood at 0.02.

Source: San­ti­ment

The uptrend might not be sus­tain­able in the long term if the trade vol­ume fails to pick up. How­ev­er, a look at Ethereum Clas­sic [ETC] might put this in perspective.

Comparing ETC price movement

The sup­port lev­el for ETC was around $27.12, while the price had been restrict­ed to the $30.92 lev­el so far. 

The RSI stayed well below the neu­tral line which would surge only in case of buy­ing pres­sure. A sim­i­lar trend was to be seen upon ana­lyz­ing the DMI. 

Source: Trad­ingView

The OBV was almost flat that showed a drop in trade vol­ume. Fur­ther­more, the lack of move­ment from these indi­ca­tors was reflect­ed in the price tra­jec­to­ry. On the oth­er hand, ETHW saw less move­ment in vol­ume but was expe­ri­enc­ing a surge in price in recent days.

The Binance announce­ment def­i­nite­ly impact­ed the price actions of ETHW pos­i­tive­ly but the indi­ca­tors were point­ing towards a hype pump. 

Fur­ther­more, the devel­op­ment activ­i­ty for both point­ed out that ETC was more active in terms of devel­op­ment than ETHW. How­ev­er, a drop in price for ETHW could be wit­nessed once the hype of the announce­ment goes down. 

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