The global cryptocurrency market experienced [a broad sell-off on Friday](https://coingape.com/markets/), the first time since a mid-January wave heralding bearish news that could overshadow crypto's recent 2023 uptrend. As the cumulative crypto market appeared to crash, the Ethereum price today dropped by a whopping 7.87% to trade at $1,400.

In what appears to be partly the result of the market's reaction surrounding the future of US-based crypto banks, the entire crypto market lost at least $60 billion in the past 24 hours, standing at $930 billion at the time of writing. Pundits are pointing at the demise of the crypto-friendly [Silvergate Bank](/news/article/silvergate-on-verge-of-collapse) ([a gap BCB Group is trying to plug](https://news.monitalks.io/news/article/bcb-group-acts-to-close-silvergate-gap)), a hawkish FED, and possibilities of government sale of Silk Road-related Bitcoin as among the reasons investors might have engaged in panic selling.

## Ethereum loses $1,500 support level

Bitcoin, the world's largest digital asset by market capitalization, wasn't spared the bloodbath, suffering a liquidation of $120 million over the last 24 hours, having shed a massive 8%. As for the world's second-largest crypto by market cap, Ethereum price today lost the $1,500 support level, trading at $1,414 with a market capitalization of $173.05 billion. The data showing a 58.60 increase in trade volume indicates decreased investor interest.   

Several events in the last few weeks have been cited as enough reason for investors to get into panic mode. First, there's been a stronger-than-expected inflation report calling into question the US's recent assertion about an ongoing disinflation trend. The FED itself didn't make things easier by acknowledging the same, even as its chair, [Jerome Powell](https://www.federalreserve.gov/newsevents/testimony/powell20230307a.htm), informed Congress that the central bank had its work cut out if it was going to reverse inflation back to its 2% target.    

## A somber alarm bell for the crypto trading markets

Moreover, the collapse last Wednesday of crypto-friendly lender Silvergate Bank and the US Department of Justice [moving 49,000 Bitcoin](https://twitter.com/PeckShieldAlert/status/1633331891347820544) it seized from Darknet marketplace Silk Road to a new Bitcoin address pointed to a possibility that the government could sell its sizeable cryptocurrency stash. The combination of all these factors is a somber alarm bell for the crypto trading markets only one week after the market experienced [$200 million liquidation](https://www.coinglass.com/LiquidationData) in minutes. 

The declining ETH price happens as Ethereum's developers plan to launch the Goerli testnet on or around 14 March, a tryout for the much anticipated [Shanghai Upgrade](/news/article/eth-shanghai-upgrade-postponed) that was pushed to sometime in April.


red image of hands holding ethereum coin on red background

Ethereum Price Today: 7% Fall 

The much-awaited [ETH Shanghai hard fork](/news/article/ethereum-shanghai-upgrade) upgrade, initially scheduled for late March, has been postponed by around two weeks by the Ethereum developers.

According to the announcement made during an [Ethereum](/news/article/ethereum-price-in-uk) developer meeting on 2 March, the ETH [Shanghai upgrade](https://cointelegraph.com/explained/ethereum-shanghai-upgrade-explained) is expected to be released sometime in the first half of April. At the meeting, the core developers agreed that the hard fork would occur approximately two weeks after the Goerli testnet launch, scheduled for 14 March. The Goerli testnet will be the final rehearsal before implementing the hard fork on the mainnet.

According to Tim Beiko, the project coordinator and a core developer for Ethereum, it is customary to provide a minimum of two weeks' notice before implementing any changes to the mainnet.

Beiko explained that if the Goerli testnet launch proceeds smoothly and the developers agree to move on 16 March, the earliest the mainnet will be updated would be in the first week of April.

In a [Twitter thread](https://twitter.com/TimBeiko/status/1631372629721620480?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1631373281650708481%7Ctwgr%5E1dbeece3471db96040845174bce7b665f85d20d5%7Ctwcon%5Es2_&ref_url=https://cointelegraph.com/news/ethereum-core-developers-push-shanghai-upgrade-to-early-april) on 2 March, Beiko clarified that they still needed to set a specific date for the mainnet update. Still, they are likely to decide during the next developer meeting on 16 March, contingent on the success of the Goerli testnet.

## What is the Shanghai Capella upgrade, and why is it essential?

The Shanghai Capella upgrade, also known as Shapella, which will be deployed on Goerli, represents the final opportunity for Ethereum clients and staking providers to verify that the Shanghai hard fork will function seamlessly when it goes live on the mainnet.

The eagerly awaited mainnet upgrade in Shanghai will enable Ethereum staked on the Beacon Chain to be withdrawn in stages. To maintain the security and stability of the network, the withdrawal of ETH will be dynamic. It will depend on the number of validators exiting at any given time. Since validators must complete a two-stage process involving an exit queue and a withdrawal period, the withdrawal process will occur gradually over time.

Around 17.1 million ETH, worth roughly $28 billion, has been staked on the Beacon Chain since the launch of the Ethereum consensus layer in December 2020. And the ETH Shanghai upgrade is predicted to benefit liquid staking providers, such as Lido, by bringing in more collateral. These platforms provide increased flexibility and yield opportunities for staked ETH, which could result in a rise in collateral deposited on them after the upgrade.


green image of shanghai and ethereum logo

ETH Shanghai Upgrade Postponed 

Ethereum developers have finally made one of its [biggest announcements](https://twitter.com/terencechain/status/1630426604802555953) after its September 2022 Merge, a second Ethereum testnet, dubbed the Shapella Sepolia upgrade, that successfully simulated withdrawals of staked Ether (ETH).

The upgrade activated at epoch 56832 on 28 February, at 4:04 UTC and finalized at 4:17 UTC, brings the Ethereum blockchain closer to the envisaged Shanghai upgrade.

The [Shanghai upgrade](/news/article/ethereum-shanghai-upgrade), the network's first major development after '[The Merge](/news/article/ethereum-merge-date),' is Ethereum's final rite of passage toward becoming a fully functional Proof-of-stake (PoS) network. 

Scheduled for March 2023, this upgrade will enable validators and stakers to withdraw the rewards they earn from adding blocks or approving transactions to the Ethereum blockchain from the [Beacon Chain](https://ethereum.org/en/upgrades/beacon-chain/). 

## One more Ethereum testnet scheduled

The ‘Ethereum Improvement Proposal’ (EIP-4895) explains the finer details of the process that will be involved to allow validators to withdraw ETH tokens staked as far back as the December 2020 launch of the Beacon Chain. Moreover, besides [EIP-4895](https://eips.ethereum.org/EIPS/eip-4895), the Shanghai fork has a [few other EIPs](https://github.com/ethereum/execution-specs/blob/master/network-upgrades/mainnet-upgrades/shanghai.md) that aim to reduce gas charges for Ethereum developers. 

According to the announcement, the developers have one more Ethereum testnet scheduled, Goerli, before the highly anticipated upgrade goes live. The Shapella Sepolia test was designed to simulate the type of withdrawals on the Ethereum blockchain Mainnet. 

Sepolia, the second and smallest Ethereum testnet among all the three planned due to the number of validators who participated, makes it the least important. That's because, unlike the Zhejiang testnet, undertaken earlier in February, it was reserved for only the Ethereum core developers. Goerli, expected in the coming weeks, would be the final tryout before the blockchain's Mainnet can successfully process staked ETH withdrawals.

## A bullish or bearish impact on the market?

Goerli is the most anticipated Ethereum testnet, seeing that it will be the biggest of the three and will most closely impersonate the blockchain's activity. Projected to occur around 21 March, this will likely push the Mainnet Shanghai Upgrade into sometime in April.

Once the Upgrade goes live, approximately [16 million staked ETH](https://beaconcha.in/) tokens will be available for withdrawal. With the withdrawal of staked ETH successfully simulated on the Zhejiang and Shapella Sepolia testnet and Goerli in the coming weeks, there’s high anticipation that as a new era of unlocked ETH begins, the Shanghai upgrade could trigger a selling wave and have a bullish or bearish impact on the market.


Second Ethereum Testnet Successful 

Ethereum PoW, or ETHW, is a hard fork of the Ethereum blockchain with "The Merge". But what is the prediction for the native token's price?

[Ethereum](/news/article/ethereum-price-in-uk) is a leading blockchain platform widely known for its native ether (ETH), the second-largest cryptocurrency in the market. It is a key player in the decentralised finance ([DeFi](/news/article/what-is-a-defi-token)) space, enabling users to create decentralised applications (DApps) with native tokens.

It was founded in 2013 by Vitalik Buterin, who pioneered smart contracts computer programs that automatically execute when certain conditions are met. These smart contracts have been beneficial for the Ethereum platform and have been adopted by many other blockchains. 

It previously operated on a Proof-of-Work (PoW) consensus mechanism, similar to [Bitcoin](/news/article/bitcoin-bull-or-bubble-debate). This relies on miners to solve complex mathematical equations to add blocks to the blockchain, earning rewards in return.

## Problems that led to the birth of Ethereum PoW(ETHW)

The PoW consensus mechanism used by [Ethereum](/news/article/why-is-ethereum-going-down) had two main drawbacks.

First, it required a vast amount of computing power, making it both costly and not very eco-friendly.

Second, the mechanism resulted in slower transaction speeds, leading to higher transaction costs, known as gas fees. Bitcoin did not face this issue as it only performs one function. With Ethereum's multiple functions, transactions on the blockchain were slower.

## The birth of Ethereum PoW (ETHW)

To address the challenges of PoW, Ethereum decided to adopt a Proof-of-Stake (PoS) consensus mechanism. Under this system, individuals are chosen to add blocks to the blockchain based on the amount of the native token they hold, in this case, Ether (ETH). This new mechanism requires less electricity, making it more environmentally friendly and appealing to investors. Additionally, it results in faster transactions and lower gas fees.

In December 2020, Ethereum announced that it would be transitioning to a PoS consensus mechanism, known as "[The Merge](/news/article/the-merge-ethereum-nft-impact)", which took place on 15 September, 2022. However, this transition harmed the blockchain's miners, as they were no longer needed and lost their supplemental income.

As a result, a group of anonymous miners established a version of Ethereum based on the original pre-Merge blockchain. This version is called Ethereum Proof-of-Work (ETH PoW). It allows people to continue earning rewards by adding blocks to the blockchain traditionally while utilising the same features as the original Ethereum. The mainnet of this Ethereum fork came online on 15 September, 2022, following The Merge.

Like any blockchain, Ethereum PoW has a native coin. ETHW is used to pay miners and can be bought, sold, or traded on cryptocurrency exchanges.

## ETHW price history

Ethereum Proof-of-Work (ETHW) was officially launched on 15 September, 2022, and reached an all-time high of $141.36 on CoinMarketCap on 8 August, 2022. The value dropped to below $100 the following day. The prices continued to decline over the next few weeks, and by the end of the month, the value of ETHW was $49.58.

As the Merge approached, the ETHW price peaked at $63.29 on 3 September, but fell to a low of $27.03 on 9 September. 

After the launch, there was some growth, and the coin reached a post-Merge high of $14.42 on 16 September. However, it faced a replay message attack which caused the price to drop to a post-Merge low of $4.22 on 19 September. The coin recovered and reached $13.78 on 24 September. It remained above $10 for the next week but fell again, reaching a low of $6.59 on 13 October before recovering to $7.66 the next day.

The collapse of the [FTX](/news/article/is-crypto-dead) exchange into bankruptcy had a negative impact on the market and ETHW, as the coin reached an all-time low of $3.13 on 22 November, with a small attempt at recovery in the following week. On 1 December, 2022, it was trading at $3.60 with a market cap of around $387.5 million, making it the 79th largest cryptocurrency.

## Ethereum PoW current price

As of the time of writing, Ethereum PoW is trading at USD 3.95 with a 24-hour trading volume of $1,83,52,256. 

Ethereum PoW is down 4.54% in the last 24 hours. It is ranked 83 on the CoinMarketCap with a market cap of $42,55,57,593, with a circulating supply of 10,78,18,999 ETHW coins.

## Ethereum PoW price prediction

Ethereum PoW price prediction by [DigitalCoinPrice](https://digitalcoinprice.com/forecast/ethereum-pow) suggests that the coin price could reach $9.05 in the current year and $10.69 the following year. The site predicts that by 2025, ETHW could be worth $14.81 before rising to $18.53 in 2027 and $22.51 in 2028. It also suggests that the coin could close the decade at $30.66, and in 2030 it predicts that it could trade at $42.71, with the potential to reach $59.23 in 2031.

[WalletInvestor's](https://walletinvestor.com/forecast/ethereumpow-prediction-data) Ethereum PoW price prediction for 2023 suggests it could face a challenging year. The site predicts that the coin's value could drop to a low of $0.277 by the start of December 2023.

It is essential to remember that the cryptocurrency markets are volatile, making it challenging to predict the price of a coin or token in a short period and even in the long term. If you are considering investing in crypto, we recommend conducting thorough research. Analyse the current market trends, news, technical and fundamental analysis, and expert opinion before making investment choices.


Ethereum PoW Price Prediction 

The Ethereum Shanghai upgrade is around the corner, with the hard fork tentatively set for March this year.

The hard fork represents [Ethereum’s (ETH) next big upgrade](/news/article/london-hard-fork-ethereum) and is one that could potentially have a significant impact on Ethereum's price.

## Significance of the upgrade

Currently, about 14% of the entire ETH supply, or 16M tokens, which is equal to roughly $26.7B, is staked on the Beacon Chain. Following the hard fork, this substantial sum will become liquid. This means that stakers and validators can [withdraw their staked assets](/news/article/what-is-staking-crypto) from the Beacon Chain.

![eth.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/eth_80460521cf.png)
 
Source: [DefiLlama](https://defillama.com/chain/Ethereum)

To put this into perspective, some ETH stakers have been waiting for three years and more to claim their rewards. That said, will these investors withdraw all their assets immediately and sell them on the open market? We at Moni Talks believe this is unlikely.

We believe the Ethereum Shanghai upgrade may see increased investment into ETH staking. After all, the cryptocurrency is the leading Proof of Stake (PoS) blockchain and the second-largest crypto asset in terms of total market cap after Bitcoin (BTC) - just over $200B.

## Why investors should not be concerned

Decentralised finance (DeFi) has a total value locked (TVL) of $49.23B at the time of writing, of which Ethereum accounts for nearly 60%. Regardless of the crypto market situation, the number of ETH deposited over a period has continued to rise at a balanced rate, crossing 500,000 validators in January 2023.

With the current staking yield of about 5.45% annual percentage rate (ARP), rewards boosted by maximal extractable value (MEV) sitting close to 7%, and [deflationary tokenomics](/news/article/ethereum-price-live), we believe that a substantial inflow into ETH staking may take place upon the upgrade.

It is worth noting that several ETH stakers purchased the cryptocurrency at its peak (during the bull run when [prices were northwards of $4,000](/news/article/ethereum-whales-fuel-eth-bounce-back)). Given that the current price of the cryptocurrency is around $1,670, it is unlikely that stakers and validators will sell their investment for a loss (they may be left to sit for longer).

It is also worth noting that Ethereum stakers must part with 32 ETH to participate in the liquid staking programme. This is possible directly with the blockchain or through liquid staking protocols such as Rocket Pool and Lido Finance.


What the Ethereum Shanghai Upgrade Really Means

The Ether price in British pounds plummeted in November, with Trading View charts showing the ETH price at less than £1,100 on 11 November and failing to rise to the level again.

Ethereum tops the list of altcoins among traders and investors. It is the most well-known altcoin and, to many investors and enthusiasts, much more than just another cryptocurrency.

Currently, the ETH price is £1,575.97, slightly higher than the opening price of this week, £1,552.52. During an entire week, Ether's price moved between a maximum of £1,063.22 on 5 December to a lowest of £1,000.01 on 7 December.

![ether.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/ether_d1e3f1abb5.png)
  
Source: Tradingview.com

The Ether price pounds value rallied 19.74% from £907 on 22 November to £1,086 on 30 November before falling -7.20%. The resistance level at £1,086 has been keeping up for a month, which is the likely cause of the correction to £1,000.01 on 7 December. On the other hand, traders are happy that the ETH is now trading 15% above its low on 22 November.

The market is already in winter, and the fall of FTX worsened the mood of traders. However, two other events pushed the waves higher and broke traders' confidence. A [tweet by Elon musk asking SBF where did the money go](/news/article/elon-musk-tweets-where-did-money-go) acted as a stone to break the beaker.

Plus, three US Senators wrote to [Silvergate Bank asking for information regarding the bank's involvement with FTX](https://cointelegraph.com/news/us-lawmakers-request-answers-from-silvergate-over-ties-to-ftx-report). Lawmakers are trying to find out legislative or regulatory solutions to prevent a similar occurrence in the future. 

Following "reports suggesting that Silvergate enabled the transfer of FTX client cash to Alameda", the lawmakers asked inquiries. They gave the bank until 19 December to respond.

NBC News, on 5 December, reported that Silvergate is claiming not to be involved in FTX and Alameda Research's apparent misuse of customer funds. However, according to 6 December news, the three Senators, Elizabeth Warren, John Kennedy, and Roger Marshall, sent a letter to Silvergate CEO Alan Lane. It asked the bank to provide details on its connection with FTX regarding the allegations and queries around its name.

It is still unclear what the long-term consequences of FTX's collapse will be, as the latest wave of bankruptcy cases poses a risk of extending the present cryptocurrency bear market. Keeping these things in mind, investors are forced to think that the crypto meltdown will likely go deeper because of such frequent negative events happening in the market.

The FTX collapse has had an influence on the course of the regulatory regime in the United Kingdom. The planned revisions would make it possible for the Financial Conduct Authority (FCA) to keep an eye on the regional operations of the crypto businesses.

In this bearish scenario, investors fear Ether could lose the £1,000 support. It's important to note that making a firm call for the Ether price pounds value is challenging. Some predict that Ether could be in for a crash this year, with its value dropping as low as £750. Crypto market analysts expect ETH to drop as much as 80% from its all-time high of £3,560, leading it to around the said support level.

## Final words

A positive aspect of the network, when considering the Ether price pounds value, is that Ethereum has more than a 90% share of the NFT market.

It is hoped that the first smart contract blockchain will survive this period of instability.


green image of British flag and GBP with ETH logo in centre

Ether Price in Pounds: Unable to Reach £1,100

The cryptocurrency market experienced a difficult "crypto winter" in 2022, with many [altcoins](/news/article/altcoin-buzz), including ETH, seeing significant price corrections of up to 70%. But Ethereum whales are contributing to the fightback.

Recently the cryptocurrency market has shown some positive signs in 2023, with Ethereum experiencing a surge in value after experiencing strong selling pressure following the [collapse of the cryptocurrency exchange FTX](/news/article/is-crypto-dead) last month. 

As of 4 January, ETH's price had risen 5% to $1,253, and its market capitalization had reached $153 billion. This improvement has been linked to increased activity by Ethereum whales, who have conducted over 600 transactions totaling more than $100,000 on the blockchain in the past 24 hours.

Here's what on-chain data provider Santiment [tweeted](https://twitter.com/santimentfeed/status/1610750951379599362) on the recent uptick in activity by Ethereum whales.

"As #altcoins have heated up, #Ethereum quietly rebounded back above $1,260 for the 1st time in 3 weeks. Though not quite at the level of the big whale dip buys on 16 December ($ETH's local price bottom), whales are showing increased interest again. "

![Screenshot 2023-01-05 at 10.39.18.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Screenshot_2023_01_05_at_10_39_18_48790ff4bb.png)
 
This increased activity from whales is a positive sign for Ethereum's short-term prospects.

## Ethereum co-founder expresses bullish outlook

Ethereum co-founder Vitalik Buterin has expressed a bullish outlook for the platform in 2023, following one of the worst crypto winters of market history in 2022. 

Buterin has announced plans to launch the ETH Improvement Protocol (EIP) 4884 in the near future. In response to a [tweet](https://twitter.com/VitalikButerin/status/1609209529706872833) by Balaji Srinivasan, Buterin stated that he is excited to achieve the "basic roll-up" milestone outlined in Ethereum's roadmap. The EIP 4884 is expected to bring significant improvements to the platform.

However, Buterin also stated several areas needing improvement within the cryptocurrency industry, including enhancing security for average users and improving scaling, privacy, and user experience. Despite these challenges, he remains confident in the potential of decentralized finance (DeFi) to play a significant role in the future financial system.


Ethereum Whales Fuel ETH Bounce Back

Ethereum (ETH) price dropped after the network completed a long-awaited upgrade known as "the [merge](/news/article/the-merge-ethereum-nft-impact)". So, why is Ethereum going down even after an upgrade?

Despite a successful merger that moved the Ethereum network from an energy-intensive proof-of-work mechanism to a proof-of-stake consensus, this leading altcoin fell more than 7% below its $1,500 threshold.

Experts from the [Forbes Advisor](https://www.forbes.com/advisor/investing/cryptocurrency/why-is-ethereum-down/) expected the price of Ethereum to drop slightly after the long-awaited merger. ETH is moving along traditional markets, especially the tech-heavy Nasdaq Composite. However, crypto enthusiasts are bullish on Ethereum's post-merger prospects. As they point out, there are no fundamental changes regarding Ethereum. If anything, the combined ecosystem is better positioned in terms of decentralization, energy efficiency, and growth, further cementing its position as the dominant Layer 1 blockchain.

## Why is Ethereum going down from its initial fall after the merger?

Cryptocurrencies like Ethereum are risky assets subject to volatility if inflation continues. The US Federal Reserve is attempting to keep inflation in check and has made it clear that its priorities are now on fighting inflation before attempting a soft landing.

The latest inflation rate has fueled investors to fear the rise in interest rates. By raising interest rates further, the Fed can strengthen the US dollar and extract more liquidity from the market. Reduced liquidity can drive down the prices of riskier assets, such as technology stocks, cryptocurrencies, and growth stocks, as investors curb spending.

Amidst rising inflation and falling liquidity, there has been little institutional investment in cryptocurrency markets other than Ethereum. There has been much excitement around the Ethereum merger and what it is bringing to the Web3 space. This decoupling move (from Ethereum) is expected to continue in the near term as investors process the [long-term implications of the merger](/news/article/ehermine-switches-off-servers), including increased energy efficiency, growth of the staking economy, and the potential deflation of ETH.

## When will Ethereum prices hit bottom?

Just as it is difficult to tell why Ethereum is going down, no one can tell for sure if Ethereum has bottomed out. Aside from the immediate aftermath of the merger and Fed price pressure, other factors could be driving a broader downtrend for Ethereum.

Ethereum's recent low of $880 was reached on 18 June. The cryptocurrency has been up and down since then. Its most recent high reached just over $2,000 in mid-August. However, it was down 58% from its all-time high in November 2021. Ethereum's price today stands at $1,299.

Investors once believed that cryptocurrencies could be viewed as a hedge against inflation, but this has not materialized. Cryptocurrencies are starting to move alongside riskier asset classes, such as growth stocks and the tech stocks of Nasdaq.

In other words, investors can escape cryptocurrencies for traditionally safer assets such as gold, oil, and real estate during times of high inflation. All of this does not bode well for Ethereum's near-term price potential.

## Bottom Line

Like all cryptocurrencies, Ethereum is a risky investment. After hitting an all-time high of around $4,800 in November 2021, Ethereum has been down about 72.9% since then. Risky investments can experience large price swings and extreme volatility. However, it can also be compared to the Nasdaq, which is full of risky growth stocks.

As a relatively new asset class, no one knows what the future holds for cryptocurrencies as an investment vehicle, and the [news about such currencies](/news) is constantly changing. Predicting their price movements is very difficult. Cryptocurrencies are also subject to cyber hacks and future regulations that can affect their overall value.

In a dynamic investment like cryptocurrency, an investor cannot just stop by thinking, "Why is ETH going down?", because it can always go up again, and then you will be in for a big windfall.


Why is Ethereum Going Down?

Ethereum price in the UK has spiked with recent developments. Before falling to $1,602 at press time today, [Ethereum](https://www.cryptopolitan.com/ethereum-price-analysis-2022-10-30/) had earlier set a 24-hour high of $1,652.

The price of Ethereum is extremely unsteady and sensitive to important developments that can affect the market. The appointment of Rishi Sunak as the UK's new Prime Minister is one of these events, along with new applications created on the [Ethereum](/news/category/ethereum-news-today) network, crucial announcements from businesses using Ethereum, and changes to policies.

The price of Ethereum has been noticeably declining for several months, but as of early last week, it seems to be trending upward. Its price rose above the descending channel pattern as it encountered critical support close to the $1,250 mark. The key negative trendline is being tested, and it looks like the price will break above it.

We'll have to wait and see if this has anything to do with the UK's new Prime Minister's appointment, as speculated.

## Future of Ether in the UK: Forces and projection

Lisa Cameron, the group chair of The Crypto and Digital Assets All Party Parliamentary Group (APPG), said on Tuesday that businesses in the UK "desperately need clarity" regarding the [nation's approach to crypto policy](https://cryptonews.net/news/legal/14972141/).

This occurs as the UK's lower chamber, the House of Commons, [decides to recognize cryptocurrency assets as regulated financial instruments](https://www.investopedia.com/uk-approves-crypto-regulations-6757694) and goods.
"UK crypto and digital asset enterprises sorely need clarity over the UK's approach to crypto policy and for the government to deliver on its vision for the UK crypto sector," Cameron stated in a written statement made available to the media on Tuesday.

This latest development is believed to have sparked investors' optimism for cryptocurrencies and contributed to the steep increase in Ethereum price. The price is currently at almost £1,200, having increased by more than 2,000% from the year's beginning.

The value of [Ethereum](https://coincodex.com/crypto/ethereum/price-prediction/) is expected to increase by 8.37% and reach $1,703.62 by November 5, 2022, according to the current Ether price projection.

As a reminder, this is merely a forecast and not financial advice.














Ethereum Price in the UK

Etheremine, Ethereum’s largest mining service provider by computing power, switched off its servers on September 15th, 2022, after Ethereum transitioned from a proof of work to a proof of stake consensus mechanism.

The mining service has been in operation for seven years and mined 3,271,518 blocks and 9,836,656 Ether, announced on its Twitter page and [official website](https://ethermine.org/announcement). Its users would no longer be able to connect their miners to the Ethereum pool.

## The Merge

Ethereum’s transition to [proof of stake (PoS)](/news/article/pos-vs-pow), dubbed the [Merge](/news/article/ethereum-the-merge), was a highly anticipated event that had been in the works for a while. The Merge replaced miners with validators. The network now relies on validators to validate transactions and security.
Before the Merge, Ether mining had developed into a multi-billion industry. More than a million people across the globe with mining equipment worth over $10 billion had at a particular time mined Ether.

The process involved miners competing to solve complex mathematical problems to earn the block rewards. Only the first miner to solve the computational problems got the rewards. 

The need for expensive mining hardware and more computational power grew as the process became more competitive. It is this need that led to the existence of mining pools like Etheremine. 

The service aggregates computing power from a group of miners to increase the probability of winning Ether. The reward would then be distributed among miners based on their contribution. The pools charged some fees for their services.

## Staking Service

In anticipation of the Merge, in August 2022, Etheremine launched a staking pool for its users. The new service offered via BitFly enabled users to stake their Ether and earn interest on their deposits. 

Unlike other platforms, Ethermine allows users to invest as little as 0.1ETH and earn yields for lending. However, in terms of the service fees, the lower a user’s holding, the higher the fees.

The platform allows those who wish to participate in ETH staking and earn but don’t have the required 32ETH. 

Before its [Ethermine Staking](https://staking.ethermine.org/) service, the platform debuted [Ethpool](https://ethpool.org/), a solo staking platform that requires users to have at least 32ETH. At the time of writing, the platform has 469 validators and guarantees 5.5% APR.

It is worth noting that those who participate in ETH staking will not be able to withdraw their earnings until the Shanghai Upgrade, another major upgrade to the Ether network. However, a precise date for the Shanghai upgrade is yet to be determined.

Also, the Merge, though a highly anticipated event, was not a welcomed network upgrade for all ETH holders. A few coin holders wished to continue using the network as a proof of work mechanism. Ethermine has no plans to support the planned PoW forks.

Although the Ethereum network has stopped mining, users can continue to use the platform’s other affiliated servers to mine Ergo (ERGO), Ethereum Classic (ETC), Beam (BEAM, and Ravencoin (RVN).



Ethermine switches off servers after Ethereum Merge

The much-anticipated upgrade to Ethereum, the merge, was completed on [September 15](/news/article/ethereum-merge-date). It transformed the blockchain’s Proof-of-work (PoW) mechanism into Proof-of-Stake (PoS). The market experts were optimistic that this upgrade would positively influence the Ether price. However, it has not been the case as the [Ethereum](https://ethereum.org/en/) price is continually plunging after the merger. 

Perhaps, the reason could be the overall downturn of the crypto market. Bitcoin is also struggling to maintain a price of over $20K. Besides, its worth even dropped under $19K this month. This has affected the entire crypto market, including Ether. Nonetheless, there are several other triggers, too.

## Ether’s nosedive after the merge

ETH was steadily thriving in the last three months when the BTC price struggled to hold its ground. In comparison to BTC, ETH saw a surge of around 60%. However, after the Ethereum merge, it [dropped](https://www.benzinga.com/markets/cryptocurrency/22/09/28917798/bitcoin-ethereum-nose-dive-445m-liquidated-from-crypto-market) significantly. 

Five days before the upgrade, Ether’s price was approaching $1,800. Even up to September 14, Ether was trading at over $1,600. But as it completed the upgrade, it lost over $300 in value. It saw a drop of almost 21% in the last seven days, showing worrying signs for Ethereum investors.

## Ether’s nosedive after the merge

ETH was steadily thriving in the last three months when the BTC price was struggling to hold its ground. In comparison to BTC, ETH saw a surge of around 60%. However, after the Ethereum merge, it [dropped](https://www.benzinga.com/markets/cryptocurrency/22/09/28917798/bitcoin-ethereum-nose-dive-445m-liquidated-from-crypto-market) significantly. 

Five days before the upgrade, Ether’s price was approaching $1,800. Even till September 14, Ether was being traded at over $1,600. But as it completed the upgrade, it lost over $300 in value. Besides, in the last 7 days, it saw a drop of almost 21%. This shows worrying signs for the Ethereum investors.

![ethereum merge.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/ethereum_merge_0d3a08eff4.png)

## Ethereum the merge: Investor sentiment 

Disappointing US economic indicators such as high inflation, looming imminent [securities regulation that may apply to Ether staking](/news/article/ether-staking), and a market downturn have negatively affected crypto investor sentiment. After the completion of the Ethereum 2.0 upgrade, the selling pressure increased. Many investors chose to liquidate their funds while the price was high to protect themselves from potential losses. 

Even after this event, ETH investment products saw tremendous outflows. Ether threw up $15.4 million in outflows. However, this was not a market-wide trend, as BTC saw an addition of around $17.4 million in investment in the same period. Time will tell if the Ethereum price has been merely affected by hawkish sentiment or if the Merge is not worth the hype.



Ethereum the Merge: Price plunge & investor sentiment

The long-awaited [Ethereum merge](/news/article/ethereum-merge-date) has transformed the blockchain into Proof-of-Stake (PoS). On Thursday, the upgrade was completed, which was welcomed by crypto investors all around the globe. 

Gary Gensler, the chair of the [Securities and Exchange Commission (SEC)](https://www.sec.gov/), has also followed the developments. He hinted that Ethereum might be considered security after the upgrade. Gensler also warned that the securities laws might also apply to Ether staking. He shared his points while speaking to the media after testifying before the Senate Committee. 

## Ether staking could trigger securities laws

According to the SEC chair, any digital coin or intermediary that investors can ‘stake’ will be identified as ‘security’ through the Howey Test. The Wall Street Journal [reported](https://www.wsj.com/articles/ethers-new-staking-model-could-draw-sec-attention-11663266224) that Gensler remarked, “From the coin’s perspective … that’s another indicia that under the Howey test, the investing public is anticipating profits based on the efforts of others.”

Though the chair has not mentioned any particular cryptocurrency, the remarks were made the same day as the Ethereum Merger. Many speculate that he was referring to Ether staking as its consensus mechanism has changed from Proof-of-Work to [Proof-of-Stake](/news/article/pos-vs-pow).

Gary Gensler also explained that staking is quite similar to lending. About this, his comments were, “[it] looks very similar—with some changes of labelling—to lending.”  

## SEC stance on securities

A security asset generally includes bonds and stocks. The service providers related to this type of assets in the United States must disclose them per the defined securities laws of the 1930s. That’s why any crypto exchange or brokerage also has to comply with these laws. If any asset is deemed a security, regulators might take legal action against the service provider. 

Previously, the regulating body has charged several firms for violating [securities laws](https://www.history.com/topics/us-government/securities-and-exchange-commission). The [SEC vs Ripple labs](/news/article/xrp-court-case-update) is a highly anticipated lawsuit in the crypto space. 

The regulators deemed the XRP token as a security and charged the firm for irregularities. 

The conclusion of this case might affect several other tokens too. The regulators also penalised BlockFi with a $100 million fine as it failed to register its interest accounts. 



Securities laws may apply to Ether staking, warns SEC

Investors look forward to the highly anticipated [Ethereum Merge](/news/article/ethereum-merge-news) in the crypto market tomorrow. The Ethereum blockchain will move from Proof-of-Work (PoW) to a much more efficient consensus mechanism, Proof-of-Stake (PoS). This transformation may help the blockchain to become a highly efficient ecosystem as its energy consumption is expected to be reduced by 99.95%. 

The merge will transition the ecosystem into Ethereum 2.0. This [new version](/news/article/ethereum-merge) is expected to be more secure, sustainable, and energy-saving. 

However, investors are still speculating how this merger will turn out. If you are also curious, here are all the details regarding the [Ethereum Merge](https://ethereum.org/en/upgrades/merge/#wen-merge) date and the predicted outcomes. 

## Ethereum Merge date

The expected [Ethereum Merge](/news/article/eth-merge-regulation) date is tomorrow- Thursday, September 15, 2022. The exact timing of the completion of the merger will depend on the network’s hash rate. It will be concluded when the network processes the Terminal Total Difficulty (TTD). 

At the time of this writing, over 20 hours are remaining for the completion. You can also check the precise Ethereum Merge date and timing via the Google countdown. 
 
![eth merge date.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/eth_merge_date_c3ef9f95a2.png)

## The expected outcomes

As mentioned earlier, the reason for transforming the consensus mechanism from PoW to PoS is to limit energy consumption. With this development, its ecosystem is assumed to become 99.95% energy efficient. It may reduce the overall carbon footprint by converting it into an eco-friendly blockchain. 

Energy efficiency may also help the blockchain to become more scalable. This will make it a sustainable ecosystem. Moreover, its transaction speed and security are also likely to be improved with this upgrade. 

![eth merge date 2.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/eth_merge_date_2_e0afc48601.png)
 
The [Nansen](https://www.nansen.ai/) and Kaiko analytic firms are closely studying the developments of this upgrade. The Kaiko report has shown that since July 2021, the funding rates for ETH have been negative. Furthermore, the traders are moving towards futures markets instead of spot markets. This is to gain more exposure before the upgrade. 

![eth merge date 3.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/eth_merge_date_3_febbb27879.png)
 
On the other hand, Nansen’s report studied that crypto whales consistently accumulate ETH, regardless of the market’s downward trends. The report points out that the investors are optimistic about an increase in price after the merger.  




Ethereum Merge: Date, expected outcomes & risks

Chainalysis, the crypto analytics company, released a report concerning ether price prediction, which says that [Ether's price may decouple](https://cointelegraph.com/news/ether-price-could-decouple-from-other-crypto-post-merge-chainalysis) from other crypto assets after the Merge, with staking yields possibly driving significant institutional adoption.

According to a report released on the 7th of September by Chainalysis, the upcoming Ethereum upgrade will give institutional investors access to staking yields comparable to those of some securities, such as bonds and commodities, while also becoming much more environmentally friendly.

Since treasury bond yields offer much less in comparison, the report stated that ETH staking is expected to provide stakers with a 10-15% yield annually, making it an "appealing bond alternative for investors."

As per Chainalysis data, the number of institutional ETH stakers — those who have staked $1 million or more — has "been steadily increasing" from less than 200 in January 2021 to around 1,100 in August this year.

According to the firm, if this number grows faster following [the Merge](/news/article/ethereum-merge), it will support the hypothesis that institutional investors "do indeed see Ethereum staking as a good profitable strategy."

Staked ETH is currently locked up in a smart contract that cannot be withdrawn from until the Shanghai update happens around six to twelve months after the Merge.

As a result, the staked ETH market is currently illiquid, prompting some staking service providers to offer synthetic assets that represent the value of the staked Ether; however, "those synthetics don't always maintain a 1:1 peg," the firm claims.

The report states, "The Shanghai upgrade will allow users to withdraw staked Ether at any time, increasing liquidity for stakers and making staking a more appealing proposition overall."

According to the Ethereum Foundation, following the upgrade, the Ethereum blockchain's proof-of-stake transition will reduce energy consumption requirements by up to 99%.

## Ether price prediction: ConsenSys report

ConsenSys, the company behind the MetaMask wallet and founded by Ethereum co-founder Joseph Lubin, released a similar report this week examining the "impact of the Merge on Institutions."

The report expresses similar sentiments about ETH staking rewards and environmental sustainability attracting institutions. Still, it also emphasises the importance of the PoS Ethereum chain "producing stronger security guarantees for institutional investors" and ETH's potential to become a deflationary asset.
 



Ether price prediction: ETH price could 'decouple'

According to a recent [report published by the International Monetary Fund (IMF)](https://www.crypto-news-flash.com/imf-report-says-crypto-assets-are-no-longer-niche-products-calls-for-comprehensive-regulation/), crypto assets have shifted from being specialized products to being more widely used in recent years (IMF). Therefore, the government must adopt more specific policies to manage the industry.

The report's co-authors, Aditya Narain (director of capital markets at the IMF) and Marina Moretti, his assistant, stated that crypto assets are now valuable as payment tools, speculative investments, and hedges against weak currencies. Both of these observations were made in the report.

In addition, the authors mentioned that the recent failures of virtual asset providers (crypto exchanges, issuers, and hedge funds) constitute the impetus for regulators to adopt applicable crypto policies.

However, Narain and Moretti point out that various challenges make it difficult for regulators to design proper BTC rules. These challenges include the inability of regulators to use their talents effectively, the rapid evolution of the market, and the effort to monitor the actions of the market.

The regulatory bodies have several competing goals, and their resources are quite limited. Because of this, they are having trouble acquiring the knowledge and capabilities necessary to keep up with the rapid rate of industrial change.

The paper also issues a call to action to the various regulatory bodies, urging them to adopt a unified and coordinated strategy regarding cryptocurrency regulation. As a result, there is the potential for a global regulatory framework consistent with cryptocurrencies.

IMF's Narain and Moretti observed that crypto regulation is a "white whale" due to rapid innovation, inconsistent nomenclature, and a lack of staffing and data collecting, and this refers to the ETH merge. So, what are some of the options?

## IMF warns that BTC regulators face many challenges

The above authors also argued that standard financial regulation does not cover various issues of BTC legislation. As a result, they propose that the process of creating the policies be distributed among the many regulators.

The regulators will then be able to merge the policies into a single worldwide crypto policy that is comprehensive. Some people may concentrate on the BTC actors, such as those who build protocols, mine cryptocurrencies, and validate transactions. Others can focus on the safety of consumers, the integrity of the financial system, or both. 

There have been multiple meetings organized by global financial authorities to discuss the most effective methods for regulating the BTC industry. Within the next month and a half, Europe intends to publish the final text of the Markets in Crypto Assets (MiCA) BTC regulation that has received significant attention.

The United States' response to the most pressing concerns regarding BTC business is proposed legislation called the "responsible financial innovation act." Even MPs opposed to BTC, who had previously pushed for a complete prohibition on the use of cryptocurrencies, now embrace the idea of regulating the market rather than outright prohibiting it.

US Congressman [Brad Sherman is the latest anti-crypto congressman to change his position](/news/article/us-crypto-congress-ban), shifting from calling for a complete ban on cryptocurrency to calling for the sector to be regulated. Sherman believes that an absolute prohibition cannot be enacted since the industry has amassed so much wealth and power in recent years. If the authorities consider the recommendations made by the IMF in this study, it will be in everyone's best interest, including investors, players, ETH merge, and regulators.



ETH merge is the obstacle to crypto regulation

An Ethereum wallet is vital before investing in the second largest cryptocurrency by market cap, Ether (ETH). The wallet not only stores Ether coins but also allows you to send, receive, and spend the crypto coins.

There are generally two types of Ethereum crypto wallets, hardware, and software crypto wallets. Some of the best options to store your Ethereum include:

## MetaMask

[MetaMask](https://metamask.io/) is one of the best, if not the best Ethereum wallet. It is one of the most widely used Ethereum wallet, and for good reasons. 

The wallet is easy to use, therefore beginner-friendly. Besides allowing you to store and spend your Ether (ETH), it also allows you to access decentralized Ethereum apps.

The MetaMask wallet is available as a browser extension and mobile app. It is a software wallet, therefore best used with a hardware wallet.

## Exodus

The [Exodus Wallet](https://www.exodus.com/) is another beginner-friendly crypto wallet ideal for ETH storage. It is free to use and non-custodial, meaning you maintain full control of your crypto. It also does not require users to register or supply personal information to use it.

The Exodus wallet supports more than 150 cryptocurrencies across seven separate blockchains. It is another software crypto wallet available on desktop and mobile.

## Atomic 

There are many reasons why many Atomic wallet users consider it the best Ethereum wallet. It is decentralized, easy to use, non-custodial, and allows users to store, exchange, and buy ETH with a bank card. Verification and KYC standards are not necessary to access funds stored in the wallet.

The Atomic Wallet supports over 500 crypto assets, including Bitcoin, Bitcoin Cash, XRP, and [Litecoin](/coins/ltc). It is also available on desktop and mobile.

## Ledger 

Ledger Nano X and Ledger Nano S are two great hardware wallets that support ETH storage. As hardware wallets, both wallets allow users to store their ETH offline.

Both wallets are physical devices in the form of USB drives. They support over 1,800 cryptocurrencies, besides ETH. They also support desktop, Android, and iOS devices.

The Ledger Nano X wallet is considered an upgrade of the Ledger Nano S. It is not only pricier but also has a few features, including a battery and Bluetooth.

## Trezor 

Trezor, like Ledger, offers two hardware crypto wallets, Trezor One and Model T that support ETH storage. Both wallets support more than a thousand cryptocurrencies, besides ETH. They are highly secure and great alternatives to the Ledger wallets.

Compared to the Ledger wallets, the Trezor wallets are lighter and more uniquely shaped. They are also cheaper. The Trezor One wallet is, however, cheaper than the Trezor Model T and all the Ledger wallets. Either of the Trezor wallets can be the best Ethereum wallet for you.

## Bottom line

There you have it, some of the best Ethereum crypto wallets to consider before investing in ETH.

While software wallets like MetaMask, Exodus, and Atomic have their advantages, which include convenience, it’s always best to consider using them with hardware wallets like the Ledger and Trezor crypto wallets for great security.



Best wallets to store your Ethereum

Ethereum merge news is having an impact on the price of digital assets linked to the blockchain.

ETH-based digital asset funds have seen positive inflows for seven straight weeks as institutional investors pile in, according to the latest CoinShares report. There were $16.3 million inflows last week, bringing total inflows to $159 million over seven weeks.

Market sentiment for Ethereum-focused products is primarily due to "greater clarity" regarding the upcoming merge. It is scheduled for September 19, according to CoinShares Head of Research James Butterfill on Monday. A shift from proof-of-work to proof-of-stake in Ethereum's algorithm is credited with the change in investor sentiment.

Finally, Ethereum 2.0 Beacon Chain will be added to the mainnet in the merge, concluding an important transition from PoW to PoS. When Ethereum switches to a PoS consensus mechanism, it should become more secure and use less energy, which will, of course, help make it less harmful to the environment.

The Goerli and Prater testnet merge is also scheduled for this week, and it will be the final dress rehearsal before the mainnet merge takes place in less than six weeks.

## Traders are getting ready for the next round of trading

[Cryptocurrency analysts Glassnode have predicted](https://cointelegraph.com/news/institutions-flocking-to-ethereum-for-7-straight-weeks-as-merge-nears-report) that the anticipated Ethereum merge news will lead to "buy the rumor and sell the news" among traders. For Ethereum, "derivatives traders are placing obvious bets on the upcoming merge."

An analytics firm's newsletter, Betting on the Merge, ETH options and futures are now in "backwardation". That is a situation in which the current price of an asset is higher than the prices trading in the futures market.

When it comes to the Ethereum merge news, futures and options markets are in a backwardation after September, which suggests that traders are anticipating an event like this and have positioned themselves accordingly, the newsletter said. Data from Ethereum options shows professional traders are ready to go long on ETH's Merge, which is relevant.

However, [the merge's impact on Ether's price](/news/article/ethereum-merge) is yet to be determined.

In a recent interview, Ethereum founder Vitalik Buterin said the "narrative" is likely to remain positive after the merge, which is "an aspect that hasn't yet been priced in."

He added, "I expect morale to soar once the merger is completed. In other words, I believe the merger will not be priced in, and by that, I mean not just in terms of market value, but also in terms of psychological impact and narrative arc. After the fact, I don't think it's going to be factored into the narrative at all."

CoinGecko reports the price of Ethereum is $1,776 at the time of writing, up 8.6% in the last seven days.



Ethereum Merge News Just Around the Corner

The Raiden Network is Ethereum’s solution to its scaling problem. It is similar to Bitcoin’s Lightning Network, allowing users to initiate fast and low-cost transactions. It works with any ERC20 token.

While built on the Ethereum blockchain, Raiden differs from Ethereum as it does not require global consensus to transfer tokens between participants. Instead, it powers token transfers using hash-locks and digital signatures.

## Benefits of using the Raiden network

Several benefits come with using the [Raiden network](https://raiden.network/101.html). Some of them include;

•	Low transaction costs: transaction costs on the Raiden network are pretty low compared to the Ethereum blockchain. Users can cheaply transfer small quantities of ERC20-based tokens over the network. Payments can be divided into smaller portions over a period for the same fee.
•	Instantaneous transfers: users can send, receive, and confirm transfers instantaneously on the Raiden network. Transfers are as fast as sending text messages.
•	Increased privacy: Users also benefit from better privacy when sending coins over the Raiden network than over the Ethereum blockchain.

## The Raiden Network Token (RDN)

The Raiden Network Token (RDN) is the native currency of the Raiden network. Its main use case is to pay for services within the Raiden network. The token can be used for micropayments and API access.

RDN tokens have a max supply of 100,000,000. According to Coinmarketcap, they currently have a circulating supply of 66,793,931. 
Compared to other cryptocurrencies, RDN coins have had a steady price increase over the years, ever since they first appeared. The digital coins were first tradable on 7th Nov 2017. 

RDN coins are currently trading at $0.06658, with a live market cap of $4,448,620. They are ranked 973rd largest cryptocurrencies in the world.

## Raiden Network Token (RDN) price predictions

Several crypto prediction platforms, including WalletInvestor and Digitalcoinprice predict RDN coins will experience a few bull runs in the future, but it won't be enough to see them trade above $1. The digital coins will still be trading under $1 by 2024.

While they may not be a quick money maker, many investors agree RDN coins are good for long-term investment. At their price, RDN coins also offer a good entry point into the crypto market for many beginner crypto investors. 

## Where to buy RDN coins

RDN coins are listed in several crypto exchanges, including Gate.io, CoinDCX, Bancor Network, and Tokenomy.
Unlike other cryptocurrencies, RDN coins cannot be purchased directly with fiat money. The crypto coins can only be bought with other crypto coins. 

You’ll first have to buy a cryptocurrency like Bitcoin or [ETH](/coins/eth) from a fiat-to-crypto exchange, then go to any exchange that lists RDN coins and use your crypto to buy the coins.

## Where to store RDN coins

As ERC20 tokens, RDN coins can be stored in any ERC20 compatible wallet, including MetaMask and MyEtherwallet. The tokens can also be stored in hardware wallets that support Ethereum blockchain like Trezor and Ledger.

Bottom line

Is Raiden Network a good investment? The network has several benefits that make it better than the Ethereum blockchain. Its native token, while not as expensive as other cryptocurrencies, stands out with its use cases in the network. Many investors also see the crypto coin as good for long-term investment.

However, as is the case with any kind of investment, research is vital to ensure you make the right investment decision. Note that this is not financial advice but the opinion of the author.


Is Raiden Network a Good Investment?