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

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. 

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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 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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