This Tuesday, the price of Ethereum (ETH), the world’s second-largest cryptocurrency by market size, slowly increased. This happened after the SEC went to court against Binance and Coinbase, which caused the whole industry to pull back. A close look at on-chain data shows that investment trends are changing as money moves away from altcoins that are having trouble.
Investors seem to be moving their money away from meme coins and other altcoins that are having problems and into Ethereum staking. With the growing demand for ETH, one might wonder how much of a price advantage it has in an industry still in turmoil. Investors now seem to be relying on the returns from ETH staking to make up for their losses caused by the falling prices of altcoins. Between June 1 and June 8, people who owned Ethereum bet an extra 1 million ETH. The amount of coins currently committed to the Ethereum beacon chain is shown by the “ETH Staked” metric. Generally, when the number of staked tokens goes up, the number of tokens that can be traded on crypto markets decreases. If demand starts to go up faster than supply, this could cause prices to go up.
This optimistic view is backed up by the fact that the market demand for Ethereum is growing faster than its supply. The Exchange On-Chain Market Depth chart shows the total number of buy and sell orders from all cryptocurrency platforms. Currently, there are more orders to buy (213,500 ETH) than plans to sell (145,190 ETH).
When the number of buy orders for an object is less than the number of sell orders, it creates a competitive market where buyers have to raise their bid prices to get their orders filled quickly. The lack of 68,310 ETH on exchanges suggests that Ethereum prices will likely increase as the competition among buyers heats up.
Even though most altcoin markets are pessimistic, Ethereum might take the chance to go back above $2,000 in the coming weeks. IntoTheBlock’s In/Out of the Money Around Price (IOMAP) data, on the other hand, shows that there was a lot of beginning resistance around $1,900.
At the top price of $1,905, 3.05 million addresses bought 5.31 million ETH, which could cause the price to drop. But if Ethereum can get through this resistance area, it could get close to $2,000 again.
On the other hand, the prediction that ETH will go up could be wrong if it suddenly falls below the key $1,795 support zone. But the 3.51 million investors who bought 9.51 million ETH at least $1,795 are expected to try to raise the price. Even though it’s rare, Ethereum could fall to $1,650 if this support level is broken.