Ethereum Price Drops Below $1.6k; Can Shanghai Upgrade Save the Day?
Ethereum Bearish Signal: Kraken, a California-based crypto exchange had agreed to close its cryptocurrency staking operations following allegations by the U.S. Securities and Exchange Commission. It is a violation to U.S. securities law, according to the SEC.
This major move by the SEC sent shockwaves through the crypto market, causing major cryptocurrencies to drop in price. Ethereum (ETH), second-largest cryptocurrency, lost approximately 5.34% over the last 24 hours to bring it back down below $1.5k.
Ethereum Price Struggles
Strong selling pressure is driving the ETH price downtrend. The ETH price rose above $1,700 on February 3, 2023 and has remained steady at $1,650 for the past few weeks. CoinMarketCap currently ranks #2 with a market cap of $188billion.
Source: CoinMarketCapThe Ethereum Shanghai Upgrade will Have a Big Impact
The Ethereum Shanghai upgrade will be available in March 2023. ETH stakers can withdraw the cryptocurrency that is currently locked in the ETH2.0 smart contract.
The bank believes there is ample room for the 14% ratio (as compared to other proof-of–stake (PoS), networks) to rise. This was according JPMorgan (JPMorgan) in a Wednesday research report.
“Assuming that the staking ratio convergences over time to the 60% average other major PoS network, the validator number can increase from 0.5 to 2.2 millions and the yield could fall from 7.4% to around 5%.”
This upgrade is the only hope for ETH owners, as the cryptocurrency market is showing a bearish trend. It could lead Ethereum to a huge surge or investors could witness the price drop. Nobody knows but it’s only a matter of time before we find out.
Also read: Ethereum Shanghai Upgrade Progress: Will the ETH price rise or fall?
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