Ethereum (ETH), Polygon (MATIC), and Arbitrum (ARB) in the red, but still looking bullish
The vast majority of the crypto market is in the red on Thursday. However, ethereum, and its ecosystem continues to look bullish. Are $ETH, $MATIC, and $ARB about to go on a run?
$ETH Price Consolidates: What’s Next for Ethereum?
Even though $ETH has been in a downward trend for the last week, it’s hard to maintain a sense of bearishness for the premier layer 1 blockchain. A flag has been forming over this period, and it looks as though a breakout could happen soon, or at worst, perhaps the price will come back to test the support at $2,400.
If $ETH continues to follow its main trend to the upside, various ethereum ecosystem coins will follow suit, and some of these will potentially outperform $ETH.
Polygon (MATIC) in Triangle Pattern: Breakout Imminent
$MATIC is in a huge triangle which has been building over a number of years. A band of support runs through the center of the triangle, and the price has generally been respecting this.
One thing is sure. $MATIC will break out of this triangle by the end of July this year. Whether this is to the upside or the downside still remains to be seen. However, if $MATIC is able to defend its status as the leading layer 2 for ethereum, a break to the upside is potentially more likely.
Arbitrum: Is Critical Support Level Its Saving Grace?
Arbitrum (ARB) is the layer 2 with arguably the best opportunity to usurp Polygon’s dominance in the ethereum layer 2 ranking. The $MATIC market cap is still three times bigger than that of $ARB, but this gap is closing.
$ARB is currently in a flag pattern as it consolidates before the next move. As seen in the above chart, the price is sitting on a reasonable level of support. That said, the next level of support at $1.88 also coincides with the golden 0.618 fibonacci, as well as the upward trend line that stretches back to 18 December.
Institutional Focus Shifts: Bitcoin to Ethereum
As institutional eyes move to ethereum and a potential spot ETF approval for the layer 1 blockchain, possibly some of the value from bitcoin, as well as growing global liquidity, are likely to flow into $ETH and its layer 2s. Keep an eye on both Polygon (MATIC) and Arbitrum (ARB).
Crypto Market Analysis: Ethereum (ETH) Bullish Amid Market Dip
It might well be argued that now the Spot Bitcoin ETFs have been approved, the focus is likely to shift from the number one cryptocurrency to the number two cryptocurrency (ethereum) and the rest of its ecosystem.
Even though the market is in a dip, ethereum and its ecosystem coins are showing signs of bullishness. $ETH consolidates and looks set for a potential breakout. $MATIC is in a triangle pattern and a breakout is expected by the end of July. $ARB is holding on to a critical support level, and its potential to challenge $MATIC is growing. As institutional eyes turn to ethereum, the flow of value from bitcoin is likely to contribute to the bullish sentiment.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Analyst comment
Positive news: The article states that Ethereum (ETH) and its ecosystem are still looking bullish, despite the current dip in the market. The analyst predicts a potential breakout for ETH, and suggests that other Ethereum ecosystem coins like Polygon (MATIC) and Arbitrum (ARB) could outperform ETH. The article also mentions a potential shift in institutional focus from Bitcoin to Ethereum, which could contribute to the bullish sentiment.
Market prediction: The analyst expects Ethereum and its ecosystem coins to continue their bullish trend, with a potential breakout for ETH, a breakout expected for MATIC, and growing potential for ARB to challenge MATIC. The shift in institutional focus to Ethereum could further support this bullish sentiment.
