Ethereum All In Crimson As ETH Struggles To Reclaim $1,600
Top altcoin Ethereum has been facing some resistance lately, slowing to a snail’s pace as ETH suffocates in the red charts. At the time of writing, altcoin currently facing losses in the hourly time frame, 24-hour as well as in the weekly chart.
The current situation for Ethereum is critical for the altcoin’s price to rise steadily. However, analysts were very neutral to the current position of the altcoin. But as the bulls struggle to reclaim the $1,600 mark, investors need to keep a close eye on the market to make the right decision.
On the Shanghai Upgrade and De-Staking Rumors
Network upgrade in Shanghai for Ethereum is expected to bring many new features to the top altcoin. This will reduce gas fees on the network and make it possible to withdraw ETH from staking. However, there are regulatory deterrents ahead that could hit staking hard.
According to a recent tweets CEO of CoinBase Brian ArmstrongThere are rumors that the US Securities and Exchange Commission will get rid of rates for retail investors, which will lead to the removal of many projects and create problems for investors.
Armstrong said in the thread:
“1/ There are rumors that the SEC would like to get rid of U.S. cryptocurrency staking for retail clients. I hope this is not the case, as I believe it would be a terrible path for the US if that were to happen.”
This will have big implications for DeFi as a whole. On Ethereum total cost locked is $28 billion, which, if the rumors are true, could mean that most, if not all, retail investors will miss out on network rewards. Not to mention, staking, as Armstrong said, is a vital part of DeFi that will inevitably impact Ethereum’s performance in the long run.
Can Shanghai hype boost Ethereum?
At the time of writing, the altcoin is currently changing hands at $1,543 with support at $1,450. Given the recent cryptocurrency staking rumors, the hype around the Shanghai upgrade may not be enough to boost the price of the altcoin.
Ethereum has a strong correlation with Bitcoin, which is also experiencing a strong bearish trend as of February 10th.
Meanwhile, ETH bulls should focus on reinforcing their support level as a bearish break to $1.5k would spell trouble for the token as it could lead to a sell-off.
With this in mind, the altcoin must then close above the $1.5K support for a chance to continue its rise.
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Credit : www.newsbtc.com