The take-off of Ethereum Proof-of-work (ETHW) has been hampered by several difficulties following its launch. The post-Merger PoW blockchain found itself inaccessible just two days after its launch date. In an interview dated September 16, 2022, Ethereum miner Chandler Guo made some bold claims about ETHW miners. This indicates that 90% of miners in the fork network could go bankrupt.
The consequences of the Merge Ethereum (ETH)
After Ethereum transitioned to a PoS network, the network fork was launched on the mainnet. The idea being that miners can continue their work on a PoW consensus mechanism.
According to additional data from OKLink, 1,715,991,282 transactions have been processed on the network since the merger. However, at press time, 204,368 transactions were pending approval on the chain.
Since the launch of the mainnet on September 15, there have been a total of transactions worth 9.54 billion ETHW on the PoW blockchain. Other data from OKLink reveals that the total number of addresses added to the network stood at 254,528,549, 9,104 in the last 24 hours.
At press time, the network had 46,616 active addresses, down 56% in the last 24 hours. Additionally, 86,516,070 addresses currently hold the native token (ETHW) of the chain. The number of addresses has increased by 798 in the last 24 hours.
ETHW: The first feedback on the course
In the past 24 hours, ETHW has seen a 10% drop in price. Nevertheless, over the same period, data from CoinMarketCap revealed a 44% rally in trading volume. This type of price-volume divergence signals buyer exhaustion. This is usually a warning sign of a continued decline in the price of a cryptocurrency asset.
On a daily chart, ETHW was significantly oversold. We find a relative strength index (RSI) positioned at 21 and a cash flow indicator (MFI) of the asset set at 14. The RSI makes it possible to determine price movements upwards or downwards for a predefined period. . On the same principle, the MFI makes it possible to measure the incoming and outgoing monetary flow over a predefined period. In practice, an asset is called overbought when the index is around 70-80. Conversely, the index is oversold when the index reaches 20-30.
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