Despite the hack of one of the smart contracts affiliated with the Ethereum Proof-of-Work network a week after the launch of this fork, the token price of this blockchain separated from Ethereum, namely “ETHW”, has recently registered a significant growth; That too in the days when most of the digital currencies had taken an almost downward trend.
To Report Cointelegraph, Ethereum’s proof-of-work token, has experienced a 150% growth in the seven days since the hack and is now trading at $10.60.
From a fundamental point of view, it can be said that this jump shows that investors have ignored the recent hack and trust the stability of Ethereum Proof of Work as a long-term blockchain project.
From a technical point of view, however, the recent growth of Proof-of-Work Ethereum has been accompanied by a decrease in the trading volume of this token. In other words, the chart below shows that few people have contributed to Ethereum Proof of Work’s spike over the past seven days.
The increasing divergence between the price and volume of Ethereum Proof of Work token transactions shows that investors’ interest in this digital currency is decreasing. This means that Proof of Work Ethereum is at risk of a sharp price drop in the coming days.
This bearish divergence is also consistent with the bearish trend line on the chart below, which has served as proof-of-work Ethereum resistance since September 2.
In the 4-hour view of the Ethereum Proof of Work market (chart below), it can be seen that traders have started selling as the price approaches this downtrend line. The recent price drop on September 27 (October 5), which originated from the meeting with the same downward trend line, has increased the possibility of the continuation of downward correction of the price.
As a result, it should be said that from the technical point of view, the Ethereum market conditions are going in favor of the sellers, and if the downward correction of the price becomes more intense, the price of this digital currency may drop to the range between 8 and 9 dollars. This range is in the same zone as the uptrend line in the 4-hour view of the market, and reaching it requires a 25% fall of Ethereum Proof of Work from current levels.
Increasing hash rate of Ethereum proof of work; Bullish sign?
Since the recent hack, the hash rate of Ethereum’s proof-of-work network has increased from 29.44 terabytes per second on September 19 (September 28) to 48.49 terabytes per second on September 27 (October 5). It should be noted that the current hash rate of Proof of Work Ethereum is 40% lower than the historical peak of this index at 79.42 terahershes per second.
The increase in hash rate means that more miners have joined the Ethereum proof-of-work network in this short period of time. Theoretically, this could increase the security of Ethereum’s proof-of-work network and reduce the probability of an attack on the blockchain by 51%.
Simultaneously, Ethereum Proof of Work has seen an increase in the value of funds locked in its network over the past few days. Data from the DefiLlama platform shows that there are currently 93,340 proof-of-work Ethereum tokens (equivalent to $1 million) locked in the network, which is an increase of about 150% compared to 37,669 units three days ago.
The “UniWswap” platform, which is considered to be an example of Uniswap Ethereum decentralized exchange (Uniswap) in the proof-of-work fork of Ethereum, has more than 50% of the locked capital of this blockchain.
The PowSea token market, the HipPoWSwap platform, and the PoWSwap decentralized exchange are other active applications of this blockchain separated from Ethereum.