Ethereum (ETH), Polygon (MATIC), and Arbitrum (ARB) in the red, but still looking bullish

Ethereum (ETH), Polygon (MATIC), and Arbitrum (ARB) in the red, but still looking bullish

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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.

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