According to Coincu, a recent analysis by JPMorgan Chase reveals that Ethereum is facing challenges following its Shanghai upgrade in April. The upgrade aimed to reduce Ethereum's energy consumption by transitioning from proof of work to proof of stake. Although it succeeded in this aspect, the network experienced a decline in key metrics, including a 12% drop in daily transactions, a 20% decrease in daily active addresses, and an 8% reduction in total locked value. Staking, however, surged by 50% post-upgrade, enhancing network security.

Despite the improvements in energy consumption and network security, concerns about centralization persist due to the high share of liquid staking protocols like Lido. The upcoming EIP-4844 upgrade, also known as 'Protodanksharding,' is expected to enhance Ethereum's data processing capabilities and is scheduled for completion by year-end. However, JPMorgan analysts warn that despite these efforts, 'continued bearish crypto forces remain a headwind.'