Arbitrum is capturing all the spotlight as analysts and investors closely monitor its moves for a breakout. The market sentiment appears to move from pessimistic to positive even after a tough week, dropping 17% this week; it might prove to be a turnaround for ARB.
Likely to be one of the most significant regulatory changes, the United States Securities and Exchange Commission has decided to shut down its investigation into whether Ether is a security. The development was shared in public by Ethereum developer Consensys in a June 19 post on X.
The post stated, “The Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0.” Consensys emphasized that this decision means the SEC will not pursue charges claiming that sales of ETH constitute securities transactions.
This positive regulatory update of Ethereum has created a ripple effect in the cryptocurrency market, where many altcoins, like Arbitrum, are showing promising price trajectories. At the time of writing, the Arbitrum is trading at $0.812924, with a 24-hour volume of close to $326.28 million and a market capitalization of $2.16 billion. The price of ARB has moved up by 2.24% in the past 24 hours.
Arbitrum Could Hit New ATH with Break Above $1.28
Renowned crypto analyst Crypto Patel has recently provided an insightful analysis of Arbitrum (ARB), outlining a potentially bullish price trajectory. According to Patel, ARB is positioned for a notable rebound, offering traders a compelling opportunity to capitalize on upcoming movements.
Crypto Patel anticipates a significant price bounce for ARB, particularly from the Point of Interest (POI) area, following a liquidity grab. This movement is expected to result in a substantial upside, with potential gains ranging between 30% to 50%.
One of the crucial levels identified is the $1.28 resistance. Patel underscores the importance of this threshold, noting that a failure to break above $1.28 could result in ARB dropping to new lows, potentially between $0.50 and $0.40. Conversely, a successful breakout above $1.28 would indicate a market structure shift (MSS), paving the way for ARB to reach a new all-time high (ATH).
For traders looking to short, Patel points out that of all zones, it is at the Order Block and Fair Value Gap box where one gets the best entry. He warns that it is in these areas where one will get the best shorts since they are set up for potential price reversals.
As Patel explains, to minimize these risks, it would be good to put a stop loss just above the Order Block. This way, the strategy will work on keeping the trader’s exposure in check and capitalizing on the expected market movements.
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