Exploring ETHPoW’s Price Rebound: Insights & Risks

Market Overview

ETHW has made quite a splash in the cryptocurrency pool recently, bouncing back over 150% just days after suffering a notable smart contract hack on its blockchain network, ETHPoW. By September 27, the price had floated up to about $10.30. It’s as if the market said, “Hack? What hack?” and decided to trust in ETHPoW’s long-term potential.

The Price Surge: A Closer Look

While it’s nice to see a price rebound, we need to examine the underlying factors. A deep dive reveals that trading volumes have been underwhelming. Fewer traders are stepping in, which means that this price increase might just be a textbook case of a bull trap—a market condition where the price rises only to stumble back down. We’ve heard of a bear market, but could this be a bull with a sprained ankle?

Technical Analysis: Trends and Volumes

Charts can tell us much more than just numbers. They have feelings, too (we’re kidding, of course). However, what they do show is that ETHW’s rally coincides with dwindling interest from traders. A bearish divergence looms large, supported by a descending trendline that’s been more challenging to break than a stubborn toddler refusing to leave a playground.

Resistance Levels in Focus

As observed on the four-hour charts, the likelihood of traders liquidating their ETHW positions near key resistance points is increasing. If this trend continues, ETHW might find itself diving into the $8-$9 range, which is certainly not a celebratory dive but more of a slip-and-fall.

Hash Rate Recovery: A Silver Lining

Now, let’s shift gears and talk about the hash rate. On a brighter note, the network’s hash rate has indeed recovered significantly since the incident. The numbers jumped from 29.44 TH/s on September 19 to 48.48 TH/s by September 27. This recovery suggests that miners are back in the game, ready to protect the blockchain from potential 51% attacks like a knight defending a castle.

Growing Value in the Network

In addition to hash rates, ETHPoW’s total value locked (TVL) is on the rise, boasting an increase from nearly 38,000 ETHW to around 66,548 ETHW in just three short days as of September 27. UniWswap, a fork of the popular Uniswap, dominates the TVL scene with its impressive presence, contributing over 50% of the total deposits. It’s almost as if ETHPoW is throwing a party, and UniWswap is the guest of honor.

Diverse Ecosystem at Work

There are several dApps making waves atop the ETHPoW blockchain, such as PoWSea, a non-fungible token (NFT) marketplace, and exchanges like PoWSwap and HipPoWSwap, adding to the excitement. So while bulls and bears are tussling, ETHPoW is gathering its friends for what could be a competitive future in the crypto space.