Arbitrum (ARB) has been in a positive mood since October 19, 2023, rising from $0.76 to a high of $1.22.
The current price of ARB stands at $1.10, and for now, bulls continue to control the price movement. This positive trend is also supported by Bitcoin’s ascent beyond $39,000 and its ambitious aim to reach $40,000 in the upcoming days or even hours.
It is important to mention that Arbitrum will hold a virtual meetup on December 7th at 5 pm UTC. The event will feature technical deep dives into various aspects of the platform, including Arbitrum Orbit, Stylus, BOLD. But where is the price of Arbitrum (ARB) going next, and what can we expect from the rest of December 2023?
Today, Crypto Lists will discuss Arbitrum (ARB) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
Go directly to
- 1 Faster speeds at lower cost
- 2 Market remains supported after Bitcoin climbs high
- 3 Technical analysis for Arbitrum (ARB)
- 4 Important support & resistance levels for Arbitrum (ARB)
- 5 What speaks for the rise in the Arbitrum (ARB) price
- 6 What indicates the downfall of Arbitrum (ARB)
- 7 What do analysts and experts say?
Faster speeds at lower cost
Arbitrum is an Ethereum layer-two (L2) scaling solution that provides faster speeds at a significantly lower cost, with the same level of security as Ethereum. Layer 2 solutions are designed to improve the efficiency of Ethereum by processing transactions and smart contracts off-chain or in a manner that reduces the burden on the Ethereum mainnet. While Ethereum only handles 14 transactions per second, Arbitrum significantly outpaces it with 40,000 transactions per second. Transaction costs on Ethereum amount to several dollars per transaction, whereas on Arbitrum, they are approximately two cents each.
Offchain Labs created Arbitrum, employing optimistic rollups to enhance speed, scalability, and cost-effectiveness. It’s noteworthy that Arbitrum’s security stems from the Ethereum network, ensuring consensus and finality for its transactions. In other words, Ethereum guarantees the validity of the rollup’s off-chain computation and data availability behind the computation.
Arbitrum enables the use of unaltered EVM contracts and empowers developers to deploy programs written in well-known programming languages such as Rust, C++, and others through its forthcoming feature called Stylus, which offers EVM+ equivalence. The native token of Arbitrum is ARB and it grants ARB holders the ability to participate in voting on proposals that impact features, protocol upgrades, and the allocation of funds. Developers have the option to utilize ARB tokens as incentives for encouraging user engagement in particular activities, like contributing liquidity or utilizing dApps constructed on Arbitrum.
Market remains supported after Bitcoin climbs high
Fundamentals of Arbitrum (ARB) are usually tied to the overall cryptocurrency market, which remains supported after Bitcoin managed to climb above $39,000 for the first time since May 2022. Many crypto analysts expect the U.S. Securities and Exchange Commission (SEC) to approve a Bitcoin ETF very soon, and if this happens, the price of ARB will probably be at higher levels. As per insights shared by analysts at JPMorgan and Bloomberg Intelligence, there’s a strong likelihood of the SEC granting approval for a Bitcoin ETF by January 10, 2024.
This anticipated approval is expected to energize the cryptocurrency markets, drawing considerable institutional investments, especially from hedge funds. Swiss blockchain analytics firm Glassnode projects a potential $70 billion bump in institutional demand after the SEC approves a Bitcoin ETF product for regulated investors. At the same time, analysts expect many cryptocurrencies to experience substantial rallies, which could change the perspective of bearish traders and encourage them to join the bullish trend.
It is also important to mention that Arbitrum will hold a virtual meetup on December 7th at 5 pm UTC. The event will feature technical deep dives into various aspects of the platform and some positive news or expectations could also have an influence on the price of ARB.
In the weeks to come, ARB and the cryptocurrency market will remain significantly influenced by the decisions of the U.S. Securities and Exchange Commission (SEC), and investors should keep in mind that while positive developments can trigger substantial price increases, they also carry potential risks. Therefore, investing in cryptocurrencies should be approached with careful consideration. Conducting thorough research and assessing one’s risk tolerance are essential steps before making any investments in this space.
Technical analysis for Arbitrum (ARB)
Arbitrum (ARB) has advanced more than 50% since October 19, 2023, rising from $0.76 to a high of $1.22. The current price of Arbitrum (ARB) stands at $1.10, and as long the price of ARB is above $1, we can’t talk about a trend reversal, and the price of this crypto remains in the BUY-ZONE.
Important support & resistance levels for Arbitrum (ARB)
On this chart (the period from June 2023), I marked important support and resistance levels that can help traders understand where the price could move. According to technical analysis, bulls control the price movement of ARB for now, and if the price advances again above $1.20, the next target could be resistance that stands at $1.30. The important support level is $1, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to the next support that stands at $0.90.
What speaks for the rise in the Arbitrum (ARB) price
The cryptocurrency market and Arbitrum (ARB) are supported by Bitcoin’s ascent beyond $39,000 and according to many crypto analysts, this positive trend should continue in the upcoming weeks. Many crypto analysts expect the U.S. Securities and Exchange Commission (SEC) to approve a Bitcoin ETF very soon, and if this happens, the price of ARB will probably be at higher levels. Swiss blockchain analytics firm Glassnode projects a potential $70 billion bump in institutional demand after the SEC approves a Bitcoin ETF product for regulated investors and the increased market liquidity could propel ARB to higher price levels.
What indicates the downfall of Arbitrum (ARB)
Investing in Arbitrum (ARB) involves a significant degree of unpredictability and substantial risk. While positive advancements have the potential to drive considerable price surges, they also come with associated risks. Furthermore, the broader macroeconomic environment remains uncertain, with major central banks actively combatting inflation through interest rate hikes, which could adversely impact risk-on assets like cryptocurrencies. It’s essential to note that ARB’s critical support level rests at $1, and a breach of this level could set the stage for a potential “bearish” target of $0.90.
What do analysts and experts say?
The cryptocurrency market is advancing at the beginning of December 2023; Bitcoin’s price hit levels above $39,000, which also positively influenced Arbitrum (ARB). The question now is whether this “bullish” phase could potentially instigate further gains and maybe a jump beyond the $1.20 mark again. Many crypto analysts say that more investors could purchase ARB in the weeks ahead, and as long the price of ARB is above $1, the price of this crypto remains in the BUY-ZONE.
Crypto analysts also say that the SEC approval for the first Bitcoin ETF in the U.S. would certainly positively influence the price of ARB, while Swiss blockchain analytics firm Glassnode projects a potential $70 billion bump in institutional demand after the SEC approves a Bitcoin ETF. However, investors should consider that Arbitrum (ARB) is a risky investment, and its price can fluctuate dramatically over short periods, leading to substantial gains or losses for investors. It’s essential to conduct thorough research, understand the risks, and only invest what you can afford to lose when considering investing in Arbitrum (ARB).
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.