Key Takeaways:
- Ethereum fork ETHPoW token jumped 150% since Sep 24.
- The technicals suggest a decline ahead for ETHW.
- Mining hashrate could have been the reason behind the price jump.
YEREVAN (CoinChapter.com) – Ethereum proof-of-work fork ETHPoW (ETHW) launched its token mid-September. The new digital asset lost 87% of its valuation in the first few days but pulled off an unexpected rally after that, rebounding 150% since Sep. 23.
As a result, ETHW briefly peaked at $14 on Sep. 24 but settled at $10 on Sep. 28. However, technicals indicate that the rally might be short-lived.
ETHW technicals hint at a decline
The ETHPoW daily chart registered a setup dubbed ‘symmetrical triangle,’ best visible on the two-hour chart. The setup is comprised of two converging trendlines with a similar slope. ETHW price action fluctuated within the pattern since Sep 23, suggesting a sharp move ahead.
Notably, the symmetrical triangle is a continuation pattern, i.e., it forecasts an extension of the bias preceding the formation. ETHW’s pre-triangle vector was indecisive. Thus a break in either direction is possible. However, the declining trading volumes carry bearish expectations.
In short, weakening trading pressure signifies that investors have lost interest in the asset, expecting a bias reversal ahead.
Also read: Bitcoin Price (BTC) Near Do-or-Die Levels and it's Vulnerable For Bigger Decline.
Meanwhile, the reasons behind the rally are not apparent.
Why did ETHPoW rally?
ETHPoW miners could be behind the recent success. According to the real-time hashrate tracking website 2minres, ETHPoW mining has been climbing since Sep 24 and fluctuated around 48 TH/s on Wednesday. Apparently, the hashrate also pushed the ETHW price up.
Binance pool also supported the digital asset miners, as announced on Sep 28, which could invite more miners into the fold, pushing hashrate.
Binance ETHW pool uses your Mining Account to mine. Please replace the wallet address (0x.…..) with your Binance Pool Mining Account in your pool configuration. The worker name will be your mining equipment’s number. You may enter any numbers or characters, such as Rig0.
detailed Binance Pool.
Meanwhile, the hashrate dramatically affected the digital asset’s total value locked (TVL), driving it up nearly 300% in 4 days. As a result, the TVL crossed the $1 million threshold on Sep. 28.
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