Before, the Ethereum blockchain used proof-of-work. The proof-of-work is a consensus technique that requires a lot of processing time and energy from all the distributed nodes that make up the blockchain. Ethereum switched from proof-of-work to proof-of-stake.
As a result of the proof-of-stake method, Ethereum’s blockchain has undergone significant revisions. Because staked ETH and approvers now protect the infrastructure, mining new blocks are no longer necessary.
The short-term price movement for Ethereum Proof-of-Work (ETHW) is bearish. The cryptocurrency is trading below two significant horizontal resistance levels. Some miners employed specific steps to maintain the proof-of-work (PoW) consensus.
When the Ethereum (ETH) Merge became live, some miners elected to stay on the previous network. As a direct consequence of the decision to stay, a new split took place, and the ETHW mainnet became online. ETHW is a Layer 1 blockchain responsible for maintaining the pre-merge PoW consensus.
More than 20 active mining pools are now dedicated to mining ETHW.
The transition has not been completed without hitches up to this point. There was a problem with the desired Chain ID. It seems to be caused by its usage by a Bitcoin cash testnet.
The glitch caused a procedure delay, resulting in a replay attack. The identical transaction was logged again during the replay assault. Binance completed the distribution of Ethereum proof-of-work tokens to holders of valid ETH.
The distribution was followed by the successful completion of the integration on Tuesday. Deposits and withdrawals of ETHW are now both possible. Consequently, the price has risen and has yet to revert to its original level.
The price of ETHW has been going up steadily since it hit a low of $3.88 on Monday. Despite this, the price action has shown a bearish pattern known as an ascending wedge. And just this past Tuesday, the price movement was rebuffed by the resistance line drawn across the wedge (shown by the red symbol).
If the wedge were to break, the area between the 0.5 and 0.618 Fibonacci retracement levels, which correspond to $5.25 and $5.65, would be an excellent place to look for support.
ETHW Movement in The Future
There is no horizontal support below the current price. The current price is extremely close to reaching an all-time low. The prediction is according to those who follow the trend over a slightly longer time frame.
In addition, two basic resistance levels range from $8.30 to $10.40 between these two prices. As a result of all of these variables and the short-term bearish pattern, it seems doubtful that a rally will begin very shortly.