The launch of the spot ETH ETF was expected to be a positive development for Ethereum and Ethereum-based tokens. Furthermore, the entire crypto market was expected to experience a significant boost, but the outcome was quite different. This caused the layer-1 & layer-2 tokens to remain consolidated within a narrow range without exhibiting the required strength. Here is what’s next for the Polygon (MATIC), Arbitrum (ARB), and Optimism (OP) prices during the second fortnight of the month.
Polygon (MATIC)
- The weekly chart of MATIC price suggests the price has approached the end of the consolidation and hence a major breakout may occur anytime from now.
- The price broke the ascending trend line but has held firmly within the descending parallel channel and is heading to test the lower support
- Besides, the Bollinger bands have begun to squeeze, suggesting a massive drop in volatility, which may result in a massive breakout soon
- However, the RSI has reached a lower level and is about to trigger a bullish rebound, validating a rise from the bearish captivity and reclaiming levels above $1
Arbitrum (ARB)
- Similar to the MATIC price rally, the Arbitrum price seems to have reached the apex of a bearish consolidation, which may result in a bullish breakout
- On-balance volume has fallen to its lowest level, which indicates the end of the accumulation phase within a descending trend is on the horizon.
- On the other hand, the RSI fails to reach the average range and is about to initiate a bearish reversal
- Therefore, the ARB price is believed to drop to the lower support of the wedge and exhaust the selling volume as a rebound occurs, which may trigger a strong upswing and breach the upper resistance to reach $0.8 and later above $1
Optimism (OP)
- The Optimism price has shed most of the gain that it incurred since the start of the year, which could flip the trend after the sellers face extreme exhaustion
- The price is trading between the crucial resistance and support zones, displaying a huge possibility of a bearish pullback before the next price action
- The MACD is close to triggering a bullish crossover as the selling volume has dropped to a large extent
- Therefore, the OP price is speculated to drop slightly, close to $1, which may attract fresh liquidity, paving the way for a significant rise to $2
