The price of EthereumPoW has been under intense pressure in recent days as investors react to the recent merger. ETHW price rose slightly to a high of $5.32, its highest level since Saturday. This price is a few points above its all-time low of $3.92.
What is ETHW and why does it crash?
Ethereum had its biggest event last week when the Merge event took place. Merge was a major event that took Ethereum from a proof-of-work (PoW) platform to a proof-of-stake (PoS) network. As a result, Ethereum is now a significantly clean blockchain platform.
After the merger, the next important phase is to make Ethereum significantly faster by introducing sharding. Sharding is a technology that divides blocks into smaller pieces, also called shards, and makes them relatively faster. It is a technology used by other popular companies such as Elrond and Polkadot.
Not everyone welcomed Ethereum’s transition to a proof-of-stake network. As a result, EthereumPoW was launched to counter the new transition. It is a proof-of-work blockchain project that is an exact clone of the original Ethereum.
Some analysts believe that ETHPoW will go mainstream for several reasons. First, the proof-of-work Ethereum has become a mainstream and secure blockchain project over the past decade. It has been significantly more secure than existing PoS platforms such as Solana and Avalanche.
Second, ETHPoW could play a key role in the mining community, leading to potentially high demand. Ethereum miners had nothing to do after the merger.
Still, EthereumPoW has fallen sharply in recent days as investors worry about the Fed’s impending rate decision. Analysts expect the Fed to raise interest rates by 0.75% during its upcoming meeting this Wednesday.
ETHW Price Forecast
The hourly chart shows that the ETHPoW price has been in a downtrend for the past few days. It crashed to a low of $3.93, which was an all-time low. However, the currency has recovered in recent days.
It has formed a bearish flag pattern which is mostly a bearish sign. It has moved slightly below the 25 and 50 period moving averages. Therefore, the coin is likely to resume the bearish trend as sellers target the next key support at $3. A move above the resistance near $6 invalidates the bearish opinion.