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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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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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