- Ethereum ETF approval led to a surge in the Arbitrum price by 30% in a week, attracting 100,000 new users.
- ARB is trading between $1.23 and $1.27, with $1.30 as the next target.
Following the approval of an Ethereum exchange-traded fund (ETF), Arbitrum saw a notable surge of 5% in the last 24 hours, attracting 100,000 new users to the platform. This surge propelled the price of ARB to reclaim the $1.20 mark, climbing over 30% in a weekly time frame from $0.9757 to $1.2712.
Additionally, the daily trading volume of the Arbitrum soared over 93% to $829 million.
As investors flocked to the Ethereum ecosystem, Ethereum Layer-2 networks, including Arbitrum, emerged as major beneficiaries of this shift in sentiment. The Ethereum ETF approval has impacted not only Arbitrum it also caused a reshuffling in the broader cryptocurrency market. Ethereum’s main rivals, Solana (SOL) and Cardano (ADA), experienced a decline in traction as Ethereum-affiliated projects surged.
Will Arbitrum (ARB) Reach New High?
Despite a correction phase since mid-March, Arbitrum exhibited bullish momentum in May, rising from $0.94 to $1.27, driven by increased volume and network activity. With active addresses hitting a record high of 1.1 million and ARB holders increasing to 1.5 million, the outlook for Arbitrum remains optimistic.
Currently, Arbitrum is trading within the resistance zone of $1.21 and $1.27. For the uptrend to continue, bulls will need to breach the $1.29 mark and enter the $1.30 zone. However, a rejection below $1.20 could signal a bearish trend, potentially bringing ARB down to $1.914, with further declines to $1.1539.
Overall, the outlook for Arbitrum remains positive, driven by increased user adoption and favorable market conditions following the Ethereum ETF approval.
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