Immediately after the Ethereum merge that saw the network move from Proof-of-Work to Proof-of-Stake, the bears took control of the Ethereum market, sending the general price of the cryptocurrency below the $1,300 mark.
However, after the merge, some original miners on the old Proof-of-Work Ethereum decided to remain and continue with the old blockchain before the fork. This decision by the miners created the ETHW mainnet. A blockchain that is now separate from the Proof-of-Stake Ethereum mainnet.
This resulting ETHW blockchain is a layer 1 blockchain that still preserves the POW consensus mechanism and has about 20 mining pools focused on ETHW (the token that powers the network).
So far, the transition of Ethereum from Proof-of-Work to Proof-of-Stake (also known as the merge) hasn't been 100% smooth. This is because the proposed chain Id for the resulting ETHW chain (10001) is already in use by a testnet, leading to the risk of the chain being vulnerable to replay attacks.
While some exchanges took their time in distribution, Binance, the world's largest crypto exchange, completed its distribution. On Binance, deposits and withdrawals of ETHW are now available on the platform, leading to a massive price increase.
Ever since hitting a low of about $3.88 on Monday, the upward trajectory of the Ethereum Proof-of-Work token has been clear.
The direction of the token's price has so far been contained in an ascending wedge pattern, which is also considered bearish. The price was also rejected from the $7.3 zone.
If a breakout to the downside occurs eventually, the nearest points the price may come to rest would be around the $5.65 – $5.25 zones, according to the FIB retracement tool.
Looking at the charts in the long term would show that the cryptocurrency is trading near its all-time low, with no horizontal support to stop it from going lower.
In addition, the $7.3, $8.3, and $10.4 resistances are also where the bears lay in wait.
If one were to predict where the price could be headed, it would be sensible to assume that the prices may trend lower for a while, hit the $5.2 zone before a short-term bounce to the upside, and create a range between the resulting channel.
As the crypto market still suffers from the FTX debacle, many altcoins follow a downward trend. Today (24 November), ETHW is changing hands at around $3.38, down by over 2.61%.
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