Ethereum’s layer-2 blockchain Arbitrum is facing a pivotal moment: will it break out of the descending triangle (in the 4-hour chart) or will it see an even deeper correction in the coming days. As NewsBTC reported, Arbitrum’s on-chain data remains extremely strong and could signal an end to the downtrend.
However, an important question will also be whether investors regain confidence in altcoins (except PEPE). Bitcoin dominance has been on the rise again against altcoins since May 1, approaching the local high of 49%. Once confidence returns, ARB could benefit greatly. But if not, another plunge could be next.
Arbitrum Price Analysis
Arbitrum’s price corrected sharply in the last two trading weeks after reaching an all-time high of $1.81 on April 23. It was only in the area of the old breakout zone at $1.30 that the ARB price found a floor after a 30% price decline.
Bullish Scenario For ARB
In a bullish scenario, Arbitrum manages to break out of the descending triangle pattern to the upside, initiating a rally to the 23.6% Fibonacci retracement level at $1.4071. Major selling pressure is expected at this point. If the buy side succeeds in breaking above this resistance, the focus shifts to the heavy resistance zone at $1.48 (38.2% Fibonacci). The ARB price already failed here in two attempts at the end of April.
Featured image from iStock, chart from TradingView.com
