Ethereum Bearish Signal: California-based crypto exchange, Kraken, had agreed to halt its cryptocurrency staking business after the US Securities and Exchange Commission (SEC) accused the platform of running an unregistered crypto staking program to offer. According to the SEC, it is a violation of US securities law.
This major move by the SEC sent shockwaves through the crypto market, causing the price of major cryptocurrencies to plummet. Ethereum (ETH), the second largest cryptocurrency, lost about 5.34% in the past 24 hours, dropping to the $1.5k level.
Ethereum price battle
The downtrend in ETH price is driven by strong selling pressure. The ETH price was able to move above $1,700 on February 3, 2023 and has held steady around the $1,650 level for the past few weeks. With a live market cap of $188 billion, CoinMarketCap is currently ranked #2.
Source – CoinMarketCap
The upgrade of Ethereum Shanghai will have a huge impact
In March 2023, the Ethereum Shanghai upgrade will go live. ETH stakers can withdraw their cryptocurrency currently locked into the ETH 2.0 smart contract.
There is plenty of room for the ratio to rise from 14%, the bank said, given that the average for other proof-of-stake (PoS) networks is about four times higher, JPMorgan (JPM) said Wednesday in a research report.
“Assuming the stakeout ratio converges over time to the 60% average of other major PoS networks, the validator number could rise from 0.5 million to 2.2 million and the yield would drop from 7.4 % right now to about 5%.”
With the cryptocurrency market on a bearish trend, this upgrade seems to be the only hope for ETH holders. It could lead Ethereum to a massive surge, or investors could witness the price drop, no one knows, but it’s only a matter of time before we find out!
Also Read: Ethereum Shanghai Upgrade Progress: Will ETH Price Rise Or Fall?
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This post Ethereum Price Stumbles Below $1.6k; Can Shanghai Upgrade save the day?
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