10000 New Users Join Arbitrum; ARB Aims for $2

Arbitrum ARB

With the expected inflow of Ethereum ETFs, many of the 1.51 million ARB investors are likely to hold onto their assets. This could push the ARB price to $1.60 and eventually $1.75.

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Ethereum (ETH), the world’s second-largest cryptocurrency, is rallying towards $4,000, and its Layer-2 platforms are gaining momentum too. Arbitrum, a Layer-2 platform, has also risen by 5%, surpassing $1.25. Additionally, daily trading volumes for Arbitrum have surged by 113% to reach $840 million.


Growing Adoption and Anticipated Ethereum ETF Inflows Boost ARB Outlook

As of the beginning of the week starting on May 20, there were 1.5 million individual wallets holding ARB tokens. By May 25, this number had increased to 1.51 million ARB wallets. This indicates that approximately 10,000 new users joined the Arbitrum network within this week. As these new participants engage in transactions, the rising demand for ARB tokens may cause further price fluctuations.

Arbitrum-ARB-Price. Courtesy: Santiment

With the anticipation of Ethereum ETF inflows on the horizon, a significant portion of the 1.51 million ARB investors are likely to hold onto their assets, expecting positive outcomes from the influx of funds into the Ethereum L2 ecosystem. The resulting reduction in sell-pressure, combined with the increasing demand from new adopters, could propel Arbitrum’s price towards the next significant milestone of $1.50.

Arbitrum (ARB) Struggles with Resistance, Eyes Potential Breakthrough

Arbitrum (ARB) has been striving to surpass the overhead resistance of $1.27 in recent days, but the bears have managed to maintain their position. A minor positive for the bulls is that they have successfully prevented the price from falling below the 20-day EMA ($1.11). This increases the likelihood of a breakthrough above the resistance. If this occurs, the ARB/USDT pair is expected to gain momentum, potentially rising to $1.60 and eventually reaching $1.75.

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Arbitrum-ARB-Price. Source: TradingView

However, this optimistic outlook will be invalidated in the near term if the price declines sharply and falls below $1.10. Such a decline could drag the price down to the strong support around $0.90.

The Arbitrum price has been moving in tandem with Ethereum. Similar to ETH, ARB has also gained 28% over the past week. Earlier this year, in January 2024, the ARB price touched an all-time high of $2.40.


Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

 

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