Set up nginx for websocket basic auth

Question

I want to set up nginx with basic auth for a WebSocket server of mine, Specifically, I want to connect to the server using new WebSocket('ws://user:[email protected]').

My current configuration of nginx is:

error_log  /var/log/nginx/error.log warn;
pid        /var/run/nginx.pid;

events {
  worker_connections 8000;

  multi_accept on;
  use epoll;
}

http {

  server {
    listen 80;
    server_name _;

    location / {
      auth_basic 'Restricted';
      auth_basic_user_file /etc/nginx/.htpasswd;

      proxy_pass http://eth;
      proxy_http_version 1.1;
      proxy_set_header Upgrade $http_upgrade;
      proxy_set_header Connection "Upgrade";
      proxy_set_header Host $host;
      proxy_set_header X-Real-IP $remote_addr;
      proxy_buffering off;
    }
  }

  upstream eth {
    server eth:8545;
  }
}

I based my conf on this:https://nginx.org/en/docs/http/websocket.html?_ga=2.247615047.1361983693.1651659402-1500014759.1651659402

However, whenever I try to connect to my server from the client application I get: WebSocket: bad handshake (HTTP status 200 OK).

Any help would be appreciated, thanks!