Ethereum price could drop 5% despite ETH PoW’s move to evolve into a deity-less public chain

• Ethereum POW has dissolved its core development team in a strategic move to explore ETHW’s potential for independence.
• ETH could drop 5% as momentum continues to fade, bucked by increasing presence of the bears in the Ether market.
• The bearish thesis will be invalidated once the altcoin records a decisive candlestick close above the $2,293 support level.

Ethereum (ETH) price pullback after the break below the bullish technical formation is threaten the upside potential for Ether. Nevertheless, the big picture bullishness remains. Meanwhile, the ETH network has achieved another milestone in the pursuit of autonomy and the effort to deliver a more eco-friendly blockchain.

Also Read: Ethereum leads altcoins north as Bitcoin halts amid bull trap fears

Ethereum dissolves core development team

Ethereum proof-of-work (ETHPOW) has dissolved its core developer team, according to an announcement on Jadal Page, adding that it is part of a strategic move to explore ETHW’s potential for independent operation without the support of the core team.

The move, unanimously approved by the core developers, represents a significant transition in the organizational structure displayed during the Ethereum Merge event in August 2022. Henceforth, the Ethereum POW will serve as the foundational consensus mechanism, maintaining the chain’s  stability and sustainability.

It is a bold move to enhance community participation and decentralized governance, allowing for a more independent operation where there is special emphasis on the dedication to DeFi principles. Citing one developer on the matter,

“When we were doing Ethereum, we knew that Proof of Work was kind of a shitty idea, but whatever, we didn’t have time to do a proper Proof of Stake before leading to launch…we didn’t have too much thought about governance…governance is not something you can retrofit.”

Ethereum price outlook

Ethereum price continues to hold above the crucial support at the $2,147 level, keeping the bullish thesis alive even after Ether broke out of an ascending parallel channel. Nevertheless, the bears are in the lead, evidenced by the position of the Relative Strength Index (RSI) below the 50 level and the red histogram bars of the Awesome Oscillator (AO), which continue to pull towards the zero line.

Also, the Moving Average Convergence Divergence (MACD) indicator shows its histogram bars in the positive territory after it crossed below the signal line (orange band).

Increased selling pressure could see Ethereum price drop 5%, losing the $2,147 support before testing the supply barrier turned bullish breaker ranging from $2,048 to $2,107. A break and close below its midline at $2,075 would confirm the continuation of the downtrend.

In the dire case, the fall could see Ethereum price extend even lower, testing the $1,935 support, levels last seen in November. Such a move would constitute a 10% drop below current levels.

ETH/USDT 1-day chart

On the other hand, if sidelined investors come in, Ethereum price could push back into the fold of the ascending channel above $2,293. A decisive candlestick close above this level would invalidate the bearish thesis, setting the tone for ETH to target the range high at $2,403 next.

In a highly bullish case, Ethereum price could shatter past this channel to tag the $2,500 level in a move that would constitute a 15% climb above current levels.