Ethereum Proof of Work (ETHW) Price Estimate for November 2022 – Rise or Fall?

Ethereum Proof of Work (ETHW) has weakened more than 70% since September 14, falling from a high of $27.87 to a low of $3.89. The current ETHW price stands at $6.49, which is more than 85% off from its all-time high price.

But where is the price of Ethereum Proof of Work (ETHW) going next, and what can we expect from November 2022?

Today, Crypto Lists will discuss Ethereum Proof of Work (ETHW) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk and how much margin have if trading with leverage.

All eyes are on the Fed

The Ethereum Network shifted from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism on September 15, 2022. Along with this move, Ethereum Proof of Work (ETHW), a distinct PoW blockchain forked from Ethereum’s Merge, became live.

Ethereum Proof of Work is basically the old pre-Merge Ethereum, and it aims to maintain the proof-of-work mining process for ETH miners. Ethereum Proof of Work attracts miners because without a proof-of-work consensus mechanism; they may go bankrupt as new tokens will be added to the blockchain via the staking process.

On the other side, a proof-of-stake (PoS) consensus mechanism is less energy-intensive and allows networks to scale inexpensively, but it is yet to be seen if PoS consensus algorithms will result in the complete cessation of PoW mining.

ETHW is still in its early stages

Ethereum Proof of Work is still in the early stages, and it is important to say that ETHW users have already suffered accessibility issues. The chain ID that Ethereum Proof of Work used is 10001, but it was already in use by a Bitcoin Cash testnet. As a result, the MetaMask cryptocurrency wallet users faced issues as the Chain ID, acting as an identifier, could not differentiate between two separate blockchains.

Chain IDs can be chosen at will because there is no central repository or registry, but pre-hard fork testing would have found the contradiction, whereas the team behind ETHW ignored the issue. Despite this, crypto exchanges like Binance and Coinbase showed support for ETHW.

Ethereum Proof of Work (ETHW) has weakened from $27.87 to $3.89 since September 14, 2022, and the current price stands at $6.49. The bearish outlook for ETHW comes amid the prevailing macroeconomic conditions that continue to weigh down the entire crypto market.

Economists have warned that a global recession could be on the horizon, especially if central banks continue to act too aggressively. The U.S. Federal Reserve took a more aggressive stance to fight inflation by raising interest rates and signaled more large increases to come in new projections.

Rating: 9.33/10
Supply: 120,524,064 / 122,444,717
Release date: September 16, 2022

Description: Buy EthereumPOW from your choice of broker or exchange.

Risk warning: Trading, buying or selling crypto currencies is extremely risky and not for everyone. Do not risk money that you could not afford to loose.

›› Read Ethereum PoW review›› Buy or Sell ETHW here

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Keeping an eye on price levels…

Investors still hope for a less aggressive Federal Reserve, but according to analysts, there is a very high probability of a 75 basis-point rate hike when Fed policymakers meet this week. Rodrigo Catril, a currency strategist at National Australia Bank, said:

“It is expected that another Fed interest rate hike is on the horizon, which will no doubt have a profound effect on the crypto market. The feeling is maybe the Fed will tone down the magnitude of hikes, but certainly, the message will be the job is not yet done, inflation remains well entrenched.”

In light of this, ETHW might have a hard time holding above the current price levels, while Bridgewater Associates founder and billionaire Ray Dalio believes that financial markets will be in a poor state for the next five years, and according to Dalio, the same rule will most likely apply to the cryptocurrency market.

Conversely, cryptocurrencies could pump this week if the Federal Reserve hints at slowing the pace of rate increases later this year. According to Morgan Stanley, recent speeches from Fed officials indicate that the pace of rate increases will slow, and investors will be closely watching the FOMC statement and Powell’s post-meeting press conference for signals around a possible step-down in the pace of rate hikes.

Technical analysis for Ethereum Proof of Work (ETHW)

Ethereum Proof of Work (ETHW) has weakened from $27.87 to $3.89 since September 14, 2022, and the current price stands at $6.49. Traders should consider that the risk of further decline is still not over, especially if the U.S. Federal Reserve continues to aggressively fight inflation by raising interest rates.

On the chart below, we can see that ETHW has been moving in a strong downtrend since the beginning of September, and as long the price of ETHW is below $12, we can’t talk about a trend reversal, and the price of ETHW remains in the SELL-ZONE.

Important support & resistance levels for Ethereum Proof of Work (ETHW)

On this chart (the period from September 2022), I marked important support and resistance levels that can help traders to understand where the price could move. Ethereum Proof of Work (ETHW) remains under pressure, but if the price advances above $10, the next target could be resistance at $12. The current support level is $6, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $5.5. If the price drops below $4, which represents very strong support, the next target could be located around $3.5.

What speaks for the rise in the Ethereum Proof of Work (ETHW) price

The crypto market sentiment is still unable to show any significant “buy” signal, which is connected with a decline in global stock markets and the U.S. dollar’s sustained strength. Cryptocurrency investors will look for signs of future policy easing when the Federal Reserve’s latest decision on interest rates is announced this Wednesday. The amount of ETHW traded over the last several weeks saw a decrease, but if the price advances above $10, the next target could be the resistance level that stands at $12.

What indicates further downfall for Ethereum Proof of Work (ETHW)

The current ETHW price stands at $6.49, which is more than 85% off from its all-time high price, and traders should consider that the risk of further decline is still not over. The cryptocurrency market continues to be bearish, following a considerable lack of demand in the market and the macro event. The current support level for ETHW stands at $6, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $5.5. If the price drops below $4, which represents very strong support, the next target could be located around $3.5.

What analysts and experts say

Investors expect another big Federal Reserve rate hike expected on Wednesday, but the main concern is whether Chair Jerome Powell would hint at an easing of aggressive policy tightening, which has been aimed at taming runaway inflation. Ethereum Proof of Work (ETHW) could pump in November if the Federal Reserve hints at slowing the pace of rate increases later this year. According to Morgan Stanley, recent speeches from Fed officials indicate that the pace of rate increases will slow, but we can not still be sure.

Head of Galaxy Digital fund and former Goldman Sachs fund manager Mike Novogratz also said that cryptocurrencies would not make any significant jump until the Fed shifts its policy from hawkish and goes back to monetary easing. Rodrigo Catril, a currency strategist at National Australia Bank, said that the feeling might be that the Fed will tone down the magnitude of hikes, but certainly, the message will be that the job is not yet done.