The Ethereum (ETH) price has sustained itself around $1,750, despite the market’s recent turbulence, and only down 3% from its peak last week. However, the increased staking activity has been instrumental in the currency’s avoidance of radical retracement. Will the upcoming Fed Rate decision affect the Ethereum price? 

The Ethereum (ETH) price has displayed notable resilience, unlike the global altcoin market capitalization that has declined by 13% in the last two weeks. This strong-performance can be attributed to Ethereum’s staking activity, which has helped attract concerned altcoin investors. 

With the Fed rate pause currently being 78%, how could this upcoming announcement affect Ethereum’s price in the coming days?

Ethereum Staking Activity Continues to Increase

After having reached an all-time high in May, Ethereum’s staking activity across the ecosystem has continued to rise in June 2023. The Glassnode’s Supply in Smart Contracts measures the staking activity by monitoring the percentage of the total ETH in circulation presently staked across various protocols. 

In the period between June 1 and June 12, crypto investors have staked approximately 360,000 ETH coins within the Ethereum Beacon chain and DeFi smart contracts. 

The increase in Supply in Smart Contracts reduces the amount available to be traded across exchanges, thereby leading to momentary market shortages that can trigger positive Ethereum price action.

It is worth noting that the United States Fed is expected to make the upcoming Interest Rate decision announcement on June 14. If this announcement leads to rate pauses or rate cuts, Ethereum’s staking activity could possibly increase even further in the coming days. 

Crypto Traders Are Eager to Buy ETH

A further demonstration of positive market outlook is evident from the exchanges’ order books that suggest that crypto buyers are keen to add more ETH to their portfolio. 

The Exchange On-Chain Market Depth chart aggregates total buy/sell orders from Ethereum traders across different crypto exchanges. Amid the current turmoil affecting altcoins, crypto traders have placed orders to purchase another 137,000 ETH coins, whereas sellers are offering only 122,000 ETH for sale.

When the demand for an asset exceeds its availability on the exchanges, it puts pressure on its price as buyers begin to compete. Currently, there is a supply shortage of 15,000 ETH across crypto exchanges. Ether holders prefer locking up their tokens in smart contracts to earn yield rather than selling them at present rates. A potential Fed Rate pause may further exacerbate these market conditions.

Consequently, these factors could drive the price of ETH to witness positive outcomes in the coming days.

Ethereum Price Prediction: $1,850 Resistance is a Key Barrier

Given these factors, Ethereum’s price may rise up to $2,000, assuming a Fed Rate pause is announced. However, for the bullish investors to remain confident about the price action, ETH must clear the initial resistance at $1,850.

Based on IntoTheBlock’s In/Out of The Money Around Price (IOMAP) data, the bulls may trigger a pullback in case the 3.38 million investors who purchased 10.97 million ETH at the average price of $1,835 starts to sell their ETH coins. If ETH successfully crosses this resistance zone, it could move up to the $2,000 price target.

The bearish investors may invalidate the bullish price recovery if ETH unexpectedly drops below the critical support zone of $1,700. Yet, it is highly likely that this drop could be prevented by the 1.23 million investors who purchased 1.79 million ETH at the minimum price of $1,700. If this support level fails, ETH’s price may retrace again towards $1,595.