{"id":550211,"date":"2023-02-10T10:43:38","date_gmt":"2023-02-10T07:43:38","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ethereum-price-risks-20-correction-amid-secs-crackdown-on-crypto-staking\/"},"modified":"2023-02-10T10:43:38","modified_gmt":"2023-02-10T07:43:38","slug":"ethereum-price-risks-20-correction-amid-secs-crackdown-on-crypto-staking","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ethereum-price-risks-20-correction-amid-secs-crackdown-on-crypto-staking\/","title":{"rendered":"# Ethereum price risks 20% correction amid SEC\u2019s crackdown on crypto staking"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e3817306d0\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e3817306d0\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-price-risks-20-correction-amid-secs-crackdown-on-crypto-staking\/#%E2%80%9D_Ethereum_price_risks_20_correction_amid_SECs_crackdown_on_crypto_staking_%E2%80%9C\" >&#8221; Ethereum price risks 20% correction amid SEC\u2019s crackdown on crypto staking &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-price-risks-20-correction-amid-secs-crackdown-on-crypto-staking\/#Will_Ethereum_staking_survive_the_SEC_crackdown\" >Will Ethereum staking survive the SEC crackdown?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-price-risks-20-correction-amid-secs-crackdown-on-crypto-staking\/#ETH_price_sees_bearish_rejection\" >ETH price sees bearish rejection<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Ethereum_price_risks_20_correction_amid_SECs_crackdown_on_crypto_staking_%E2%80%9C\"><\/span>&#8221; Ethereum price risks 20% correction amid SEC\u2019s crackdown on crypto staking &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-4bbf85c5>Ethereum\u2019s native token, Ether (ETH), saw its worst daily performance of the year as the United States Securities and Exchange Commission (SEC) stopped Kraken, a cryptocurrency exchange, from offering crypto staking services.<\/p>\n<p>On Feb. 9, Kraken agreed to pay $30 million to settle the SEC\u2019s allegation that it broke securities rules by offering crypto staking services to U.S. retail investors.<\/p>\n<p>In particular, the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> pushed down the prices of many proof-of-stake (PoS) blockchain project tokens. Ethereum, which switched to a staking-based protocol in September 2022, also suffered.<\/p>\n<p>On Feb. 9, ETH\u2019s price plunged nearly 6.5% to around $1,525, the largest single-day decline since Dec. 16 of last year.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/70a2c444-ab21-4f4a-a161-96a408ff70a1.png\"><figcaption style=\"text-align: center;\"><em>ETH\/USD daily price chart. Source: TradingView.com<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Will_Ethereum_staking_survive_the_SEC_crackdown\"><\/span>Will Ethereum staking survive the SEC crackdown?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The SEC&#8217;s crackdown on crypto staking begins as Ethereum awaits the release of its key network upgrade, dubbed Shanghai, in March.\u00a0<\/p>\n<p>The update will finally allow Ether validators \u2014 entities that have <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/etherscan.io\/address\/0x00000000219ab540356cBB839Cbe05303d7705Fa\">locked<\/a> <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roximately $25.6 billion worth of ETH tokens in Ethereum\u2019s PoS smart contract \u2014 to withdraw their assets alongside yield rewards. <\/p>\n<p>As a result, multiple analysts, including Bitwise Asset Management\u2019s chief investment officer, Matt Hougan, consider Shanghai a bullish event for Ether.<\/p>\n<p>\u201cToday, many investors who would like to stake ETH and earn yield are sitting on the sidelines. After all, most investment strategies can\u2019t tolerate an indefinite lock-up,\u201d <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/bitwiseinvestments.com\/crypto-market-insights\/the-bitwise-investor-letter-january-2023\">wrote<\/a> Hougan in his letter to investors in January, adding: <\/p>\n<blockquote><p>\u201cSo, most investors stay out of the market. But once that indefinite lock-up is removed, the percentage of investors willing to stake their ETH will explode.\u201c<\/p><\/blockquote>\n<p>But doubts have been emerging about the future of crypto staking in the U.S., with Brian Armstrong, the CEO of Coinbase crypto exchange, fearing that the SEC would ban staking for retail investors in the future.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">1\/ We&#8217;re hearing rumors that the SEC would like to get rid of crypto staking in the U.S. for retail customers. I hope that&#8217;s not the case as I believe it would be a terrible path for the U.S. if that was allowed to happen.<\/p>\n<p>\u2014 Brian Armstrong (@brian_armstrong) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/brian_armstrong\/status\/1623459203150131201?ref_src=twsrc%5Etfw\">February 8, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Moreover, some analysts argue that banning Ether-staking services will force users to move away from Ethereum.<\/p>\n<p>Notably, Ethereum requires stakers to deposit 32 ETH (~$50,000) into its PoS smart contract to be a validator. As a result, retail investors often use\u00a0third-party staking services\u00a0that pool smaller amounts of ETH to enable validator status.\u00a0<\/p>\n<p>\u201cIf the SEC bans crypto staking for the public, then a majority of Ethereum validators will have to come down,\u201d <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/XRPNews_\/status\/1623739373517692930\">argues<\/a>\u00a0independent analyst Ripple Van Winkle, adding: <\/p>\n<blockquote><p>\u201cBecause you need 32 ETH to stake. Which means the ETH network is going to experience issues.\u201c<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"ETH_price_sees_bearish_rejection\"><\/span>ETH price sees bearish rejection<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>From a technical perspective, Ether price is positioned for a potential 20% price correction in February.<\/p>\n<p><strong><em>Related:\u00a0Bitcoin price hits 2-week low amid warning $22.5K loss means fresh dip<\/em><\/strong><\/p>\n<p>Notably, on the daily chart, ETH price has been undergoing a pullback move after testing its multimonth descending trendline as resistance. It now holds the 200-day exponential moving average (200-day EMA; the blue wave) near $1,525 as support.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/63a61c94-9611-4fe5-b859-65090af4d2e2.png\"><figcaption style=\"text-align: center;\"><em>ETH\/USD daily price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Ether risks dropping below the 200-day EMA support wave owing to its negative market fundamentals. Such a scenario includes the next downside target at $1,200, which coincides with a multimonth ascending trendline support.<\/p>\n<p class=\"post-content__disclaimer\">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/ethereum-price-risks-20-correction-amid-sec-s-crackdown-on-crypto-staking\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Ethereum price risks 20% correction amid SEC\u2019s crackdown on crypto staking &#8220; Ethereum\u2019s native token, Ether (ETH), saw its worst daily performance of the year as the United States Securities and Exchange Commission (SEC) stopped Kraken, a cryptocurrency exchange, from offering crypto staking services. On Feb. 9, Kraken agreed to pay $30 million to&#8230;<\/p>\n","protected":false},"author":1,"featured_media":550212,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/be0e9aa2-60fe-4db0-9553-9b28afd74ca6.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74858,74956,82402,74891,75326,74938,75540,74939,74876,74898,133582,78261,73785],"class_list":["post-550211","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin-regulation","tag-coinbase","tag-ether-price","tag-ethereum","tag-ethereum-2-0","tag-ethereum-price","tag-kraken","tag-market-analysis","tag-proof-of-stake","tag-sec","tag-staking","tag-tech-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/550211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=550211"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/550211\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/550212"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=550211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=550211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=550211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}