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

ETHW has logged a big worth rebound regardless of its blockchain community, ETHPoW, suffering a smart 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.

Essentially, this implies that merchants ignored the hack and trusted ETHPoW’s long-term viability as a blockchain venture.

However from a technical perspective, the ETHW worth rally has accompanied weaker buying and selling volumes. In different phrases, fewer merchants have been concerned within the pumping of the ETHPoW token’s worth prior to now eight days, because the Bitfinex alternate information reveals within the chart under.

ETHW/USD each day worth 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 worth dangers a pointy correction within the coming days.

Associated: Dogecoin becomes 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 under, 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 opportunity of an prolonged worth correction.

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

Consequently, 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 worth vary, which additionally coincides with ascending trendline help, or a 25% drop from present worth ranges.

ETHPoW hash charge recovers

On a brighter notice, the ETHPoW’s community hash charge has recovered considerably because the 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 split from the Ethereum proof-of-stake (PoS) chain on Sept. 15. In concept, it ought to guarantee higher safety towards potential 51% attacks

Simultaneously, ETHPoW has witnessed a growth in its network’s total valued locked (TVL). As of Sept. 27, ETHPoW had 66,548 ETHW deposited across four decentralized exchanges functioning atop its blockchain compared to nearly 38,000 ETHW three days prior, or a 75% increase in the last three days.

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

Interestingly, UniWswap, a fork of the Ethereum blockchain-based decentralized exchange Uniswap, comprises more than 50% of the ETHPoW chain’s TVL.

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DApps functional atop ETHPoW chain. Source: Defi Llama

Other DApps include PoWSea, a nonfungible token ( marketplace, as well as exchanges PoWSwap and HipPoWSwap.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.