As a result of the Ethereum Merge’s popularity, the Ethereum Proof of Work (ETHW) token grew in popularity as well. Developers had created a fork to maintain the original structure of the network. After the Ethereum network completed the merge, the token was airdropped to the Ethereum holders. However, shortly after its launch, the digital asset suffered massive losses.
ETHW Seems to be Recovering
The distribution of Ethereum Proof of Work (ETHW) tokens had been ongoing for several days following the merger. Due to the issue’s complexity, many exchanges had to give their customers more time to receive the tokens. With the completion of the distribution by Binance, the digital asset received a boost.
Binance completed the distribution in the early hours of Tuesday. Due to the event, the exchange opened its deposits and withdrawals for ETHW. That caused a spike in demand for cryptocurrency.
In just a couple of hours, the price of ETHW had increased by over 30%. It broke out of the $5 range and hit a high of $7. That was the rally’s peak, trending higher for the last few days.
Although the rally has since stopped, ETHW is still gaining and is up 3.38% over the past 24 hrs. It is currently at the top spot on the list of Top Trending by the cryptocurrency exchange, coinmarketcap.
ETH Falls After Hitting $1,800
On September 15, the merge took effect causing the price of ETH to drop by 11.91 percent. The move wiped out all of its gains since September 14. Still, the outlook for ETH is negative, suggesting that the winter will continue.
After reaching support near the 61.80 Fib level, ETH’s price started to increase. However, it is still expected to face a deeper decline. The bears have also started to explore the Donchian channel’s lower section. That suggests that the price could be headed for a deeper decline.
Despite the positive outlook for Ethereum’s future, it is still not feasible to predict its recovery due to the various concerns raised by the recent merger. Investors and traders need to remain positive about the company’s future. However, some investors and traders still believe that the Proof-of-Stake system is a risky move for cryptocurrency.
In a Reddit post, a user noted that the Proof-of-Stake system benefits the rich while the poor are denied opportunities. Due to the current market conditions and the skepticism surrounding the upgrade, many investors and dealers are selling.
The stochastic and momentum indicators show that the current market conditions are unfavourable for Ethereum. The convergence of the Stoch and Momentum indicators suggests that investors’ sentiment is at an all-time low.
Ethereum Bulls Feeling The Pain
The momentum of Ethereum has dropped to -400.90, and it is currently experiencing a significant decline in the financial markets. The bulls also feel the pressure from the merge and anxiety in the broader market. According to the correlation coefficient between Bitcoin and Ethereum, the price movements are closely tracked.
Despite the current market situation, it is still possible that the investors and traders of Ethereum are still in it for the long run. According to Gary Gensler, the chairman of the Securities and Exchange Commission, staking could potentially expose ETH to various legal problems.
Although Ethereum is the only cryptocurrency that uses the proof-of-stake protocol, other cryptos, such as SOL, ADA, and DOT, are also supported by the same protocol. If the Securities and Exchange Commission decides to classify Ethereum as a security, it could lead to the investigation of other cryptocurrencies.
Meanwhile, although the price of Ethereum has dropped significantly, it is still possible that it can bounce back from this decline.