#Arbitrum price readies to explode 12% if #Ethereum nicks $4,000
Arbitrum's price has rebounded nearly 50% from its yearly lows and is poised for further gains, especially if Ethereum's price surpasses the $4,000 mark. Currently, ARB is consolidating within a range, but its bullish momentum could be reignited with increased liquidity flowing into Ethereum betas like ARB.
The immediate hurdle for Arbitrum's price is the $2.2017 resistance level, marking the upper boundary of its current trading range. However, with strong support from the 50-day Simple Moving Average (SMA) at $1.8989, ARB could overcome this resistance and aim for the $2.4250 peak reached on January 11, representing a potential 12% increase from current levels.
In a highly bullish scenario, ARB could surpass this range high and target the psychological level of $2.6000. The ascending Relative Strength Index (RSI) and #bullish volume indicators further support the upward momentum, adding credibility to the bullish outlook.
On-chain metrics also support a bullish thesis for Arbitrum's price. Decreasing social dominance and social volume indicate that the ARB project is not overhyped, while an increase in daily active addresses and development activity on the network suggests growing user engagement and network progress. Additionally, spikes in whale transactions exceeding $100,000 signal strong bullish fundamentals.
However, if traders start to take profits, ARB's price could face downward pressure, potentially breaking below the 50-day SMA at $1.8989. Further declines could lead to a test of the $1.7307 support level, and a breach of this level could invalidate the bullish thesis, especially if ARB creates a lower low below the 200-day SMA at $1.6867.
Source - fxstreet.com
