Table of Contents
- $ETH price consolidates
- Polygon (MATIC) in huge triangle pattern
- Arbitrum heading for critical support
- Institutional gaze moves from $BTC to $ETH
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?
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.
$ETH price consolidates
Source: Trading View
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 of the ethereum ecosystem coins will follow suit, and some of these will potentially outperform $ETH.
Polygon (MATIC) in huge triangle pattern
Source: Trading View
$MATIC is in a huge triangle which has been building over a number of years. A band of support runs through the centre 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 heading for critical support
Source: Trading View
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 gaze moves from $BTC to $ETH
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).
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.
