Ethereum Price Stumbles Below $1.6k; Can Shanghai Upgrade Save The Day?

Ethereum Bearish Signal: California-based crypto exchange, Kraken had agreed to shut its cryptocurrency staking operations after the U.S. Securities and Exchange Commission (SEC) accused the platform of offering an unregistered crypto staking program. According to the SEC, it is a violation of the U.S. securities law.

This major step by the SEC sent shockwaves in the crypto market causing the price of major cryptocurrencies drop. Ethereum (ETH), the second largest cryptocurrency, lost approximately 5.34% in the last 24 hours, bringing it back down to the level of $1.5k.

Ethereum Price Struggles

The downtrend in ETH price is being driven by strong selling pressure. The ETH price was able to climb above $1,700 on February 03, 2023, and remained stable near the $1,650 level over the past few weeks. With a live market cap of $188 billion, CoinMarketCap is currently ranked #2.

The Ethereum Shanghai Upgrade Will Have a Huge Impact

In March 2023, the Ethereum Shanghai upgrade will go live. ETH stakers will be able to withdraw their cryptocurrency currently locked in the ETH 2.0 smart contract.

There is plenty of room for the 14% ratio to rise, the bank said, given that the average for other proof-of-stake (PoS) networks is about four times as high, JPMorgan (JPM) said in a research report Wednesday.

“Assuming the staking ratio converges over time to the 60% average of other major PoS networks, the validator number could increase from 0.5 million to 2.2 million and the yield would fall from 7.4% current to around 5%.”

Now that the cryptocurrency market is projecting a bearish trend, this upgrade seems the only hope for ETH holders. It can lead Ethereum toward a massive surge, or investors can witness the price dump, nobody knows, but it’s just a matter of time until we find out!

Also Read: Ethereum Shanghai Upgrade Progress: Will ETH Price Rise Or Fall?

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.