Ethereum fork token ETHPoW climbs 150% after smart contract hack — A fakeout rally?

ETHW has logged a big value rebound regardless of its blockchain community, ETHPoW, struggling a sensible contract hack within the first week after its launch.

Bull entice dangers encompass ETHW market

ETHW rebounded greater than 150% eight days after the assault and traded for round $10.30 on Sept. 27.

Basically, this means that merchants ignored the hack and trusted ETHPoW’s long-term viability as a blockchain mission.

However from a technical perspective, the ETHW value rally has accompanied weaker buying and selling volumes. In different phrases, fewer merchants have been concerned within the pumping of the ETHPoW token’s value previously eight days, because the Bitfinex alternate information exhibits within the chart beneath.

ETHW/USD every day value chart. Supply: TradingView

The rising divergence between ETHW’s rising costs and falling buying and selling volumes means that merchants’ curiosity within the ETHPoW token has been dwindling. In different phrases, ETHW’s value dangers a pointy correction within the coming days.

Associated: Dogecoin turns into second largest PoW cryptocurrency

This “bearish divergence” setup is supported by a descending trendline that has served as resistance for ETHW since Sept. 2. 

On the four-hour chart beneath, merchants have proven their chance of dumping their ETHW positions close to the mentioned resistance. Furthermore, even the token’s newest pullback transfer on Sept. 27 has originated close to the identical trendline, elevating the potential for an prolonged value correction.

ETHW/USD four-hour value chart. Supply: TradingView

In consequence, ETHW’s short-term technical bias is skewed towards the bears. So, if its correction extends, the PoW token dangers falling into the $8–$9 value vary, which additionally coincides with ascending trendline help, or a 25% drop from present value ranges.

ETHPoW hash charge recovers

On a brighter notice, the ETHPoW’s community hash charge has recovered considerably for the reason that good contract hack, rising from 29.44 TH/s on Sept. 19 to 48.48 TH/s on Sep. 27. Though, the present hash charge continues to be down about 40% from its file excessive of 79.42 TH/s.

ETHPoW hash charge efficiency since launch. Supply:

Nonetheless, a rising hash charge means extra miners have joined the ETHPoW community after its cut up from the Ethereum proof-of-stake (PoS) chain on Sept. 15. In principle, it ought to guarantee higher safety in opposition to potential 51% assaults. 

Concurrently, ETHPoW has witnessed a development in its community’s complete valued locked (TVL). As of Sept. 27, ETHPoW had 66,548 ETHW deposited throughout 4 decentralized exchanges functioning atop its blockchain in comparison with almost 38,000 ETHW three days prior, or a 75% improve within the final three days.

ETHPoW TVL as of Sep. 27, 2022. Supply: Defi Llama

Apparently, UniWswap, a fork of the Ethereum blockchain-based decentralized alternate Uniswap, includes greater than 50% of the ETHPoW chain’s TVL.

DApps useful atop ETHPoW chain. Supply: Defi Llama

Different DApps embody PoWSea, a nonfungible token ( market, in addition to exchanges PoWSwap and HipPoWSwap.

The views and opinions expressed listed here are solely these of the creator and don’t essentially replicate the views of Each funding and buying and selling transfer includes threat, it is best to conduct your personal analysis when making a call.

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