According to Beincrypto: Ethereum (ETH) price recovered slightly on Tuesday following an industry-wide correction due to the SEC lawsuit. An in-depth analysis of on-chain data shows that investors who are reallocating capital away from altcoins are facing trouble.
Besides, on-chain data shows that staking activity on Ethereum has increased significantly this week as investors reallocate capital out of meme coins and altcoins are in trouble.
A spike in staking activity could trigger an ETH price rally As altcoin prices continue to fall, holders are now turning to ETH staking profit targets to minimize their losses. The chart below shows Ethereum holders staking an additional 1 million ETH between June 1 and June 8.
![](https://public.bnbstatic.com/image/pgc/202306/14ccfed2f04607974e01d71f9385270e.jpg)
Usually, as holders lock up more tokens, that reduces the supply available for trading on crypto exchanges. A temporary shortage in the market could trigger an ETH rally if demand begins to outstrip supply.
Investors are queuing to "catch the bottom"
For further confirmation of the bullish outlook, the order books of exchanges show that Ethereum market demand is starting to outstrip supply. Currently, investors have placed buy orders for 213,500 ETH. Meanwhile, sellers have only placed 145,190 Ethereum tokens for sale.
![](https://public.bnbstatic.com/image/pgc/202306/6db2594e199d81b60483f00bacd03b68.jpg)
When the demand for an asset exceeds the number of sell orders, the level of competition increases and buyers tend to increase the bid price to quickly complete their buy order. Currently, the supply is short of 68,310 ETH on exchanges. This suggests that the price of Ethereum will rise further as buyers begin to compete.
Considering the overall bleak sentiment in the altcoin market, ETH is likely to benefit from a recovery above $2,000 in the coming weeks.
However, IntoTheBlock's In/Out of The Money Around Price (IOMAP) data shows that ETH will face initial key resistance around $1,900.
At that zone, 3.05 million addresses bought 5.31 million ETH at a maximum price of $1,905 that could trigger a correction. But if ETH can scale that resistance area, it could head towards $2,000 once again.
![](https://public.bnbstatic.com/image/pgc/202306/19c55792306c8d5a6e7b55958c1a6f89.jpg)
On the other hand, the bears can invalidate the price recovery prediction if ETH drops below the critical $1,795 support area. However, 3.51 million investors who bought 9.51 million ETH at a minimum of $1,795 will attempt to rally. Although unlikely, ETH could plunge towards $1,650 if that support is broken.
*This is a personal opinion, be careful when you make investment decisions*