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Can a spike in ETH price boost the state of Arbitrum, Optimism

Press Releases Crypto News AMB-Crypto Can a spike in ETH price boost the state of Arbitrum, Optimism

ARB and OP fell by double digits in the last seven days.
Traction on the L2 networks has decreased despite an earlier hike a few days back.

Arbitrum [ARB] and Optimism [OP] prices have seen major declines recently. According to AMBCrypto’s assessment of the market, ARB’s value decreased by 16% in the last seven days.

OP’s price dropped by 15%, suggesting that the tokens might have hit a local top when they rallied. At press time, OP changed hands at $3.25 despite hitting $4.25 on the 12th of January.

Also, ARB’s attempt at reaching $3 has been stopped, with the price falling to $1.85 in the process.

Optimism and Arbitrum are Ethereum [ETH] scaling solutions. Furthermore, ETH was the major reason the cryptocurrencies rallied. As beta versions of the altcoin, ARB and OP have a strong correlation with ETH.

For instance, AMBCrypto observed that if ETH’s price climbs, the values of the tokens climb harder.

Also, when the price of ETH falls, the others fall much harder. This was evident in the recent nosedive as when ETH decreased by 5.34%, OP and ARB fell by double-digits.

ARB’s further fall might be unavoidable

From the technical perspective, ARB experienced a surge in trading volume when the price climbed from $1.64 to $2.40. This happened between the 10th and 12th of January.

However, the volume of the cryptocurrency has become low, indicating a lack of interest in it.

Also, the price at $1.85 seemed like a crucial zone for the token. If sellers breach the zone, ARB might fall to $1.70 which was the next support area. Indications from the Awesome Oscillator (AO) showed that this was likely.

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Author: Victor Olanrewaju

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