10,000 New Users Join Ethereum Layer-2 Arbitrum, ARB Price Eyes $2

by

As a seasoned analyst with extensive experience in the cryptocurrency market, I find the recent surge in Ethereum (ETH) and its Layer-2 platforms, particularly Arbitrum (ARB), to be an intriguing development. The data presented shows a clear upward trend for both Ethereum and Arbitrum, with the latter experiencing a 5% move towards $1.25 and daily trading volumes reaching an all-time high of $840 million.

As an analyst, I’ve noticed an uptick in price action for Ethereum (ETH), currently the world’s second-largest cryptocurrency, which has reached a new milestone at $4,000. In parallel with Ethereum’s rally, its Layer-2 platforms, including Arbitrum, have shown similar momentum. Arbitrum, in particular, is experiencing a 5% price increase and surpassing the $1.25 mark. Additionally, daily trading volumes for these platforms have seen a significant surge, with Arbitrum’s reaching an impressive $840 million – a 113% increase from previous levels.

10,000 New Users Join Arbitrum Over the Last Week

According to the chart’s information, there were approximately 1.5 million ARB token-holding wallets at the beginning of the week commencing May 20. As of May 25, this figure has risen slightly to around 1.51 million ARB wallets.

Around 10,000 new users are believed to have signed up for the Arbitrum network over the past week. As these newcomers begin conducting transactions, there could be heightened demand for ARB tokens, potentially leading to more price volatility.

10,000 New Users Join Ethereum Layer-2 Arbitrum, ARB Price Eyes $2

Additionally, the upcoming potential inflow of Ethereum ETF investments is predicted to draw in approximately 1.51 million ARB investors, who may choose to keep their assets in anticipation of positive results from the increased financial input into the Ethereum Layer 2 platform.

As an analyst, I would interpret this scenario as follows: The decrease in selling pressure and the increasing demand from new buyers could potentially drive Arbitrum’s price upward, approaching the next notable resistance level around $1.50.

ARB Price Action

As an analyst, I’ve noticed that Arbitrum (ARB) has been making efforts to break past the resistance level of $1.27 in the past few days. However, bears have successfully kept the price action under their control.

As an analyst, I can say that the bulls have managed to keep the price above the 20-day Exponential Moving Average (EMA) at $1.11. This is a small victory for them and increases the chances of a breakout above the resistance level. If this happens, the ARB/USDT pair could pick up momentum, potentially reaching $1.60 and even aiming for $1.75 in the future.

10,000 New Users Join Ethereum Layer-2 Arbitrum, ARB Price Eyes $2

As a researcher, I’ve identified a potential bullish trend based on current market conditions. However, this positive perspective may be challenged if the price takes a significant downturn and drops below the $1.10 mark. In such a scenario, the price could potentially plummet further down to hit the robust support level around $0.90.

The Arbitrum price has mirrored Ethereum’s trend; it has surged by approximately 28% within the last week. Back in January 2024, ARB reached its peak price at $2.4, marking a new record high.

Read More

2024-05-27 12:35