Low 2 -tokens often derive their value from the Ethereum Ecosystem, because they rely on Ethereum for safety and settlements. When the ETH price rises, confidence in the wider network increases, which increases the demand for low 2 solutions as a result of scalability needs. Conversely, falling ETH prices can reduce activities and investor interest in the ecosystem, which influences the valuation valuations of layer 2. Here are some of these tokens, which are waiting for the Ethereum price to reach levels above $ 3000 that can push the prices of this Layer 2 tokens past the Bearish range.
Arbitrum (ARB)
Arbitrum is a leading Layer-2-scale solution for Ethereum, designed to improve the transaction speed and to lower costs using optimistic Rollup technology. By discharging the calculation of the most important Ethereum chain, the faster, cheaper decentralized applications makes possible while retaining the safety of Ethereum. The indigenous token, ARB, Power Governance and Ecosystem Incentives, act within the lowest price range and wait at the right time to activate an outbreak.
As mentioned earlier, the lowest support level tests at price and is therefore supposed to activate a rebound at any time. The DMI shows signs of the bullish reversal while the ADX is on its way to the lower threshold that a rebound can activate, which can also initiate a bullish crossover between the +DI & -Di. This allows the Ichimoku cloud to also undergo a bullish crossover that can increase the optimism price above $ 1 again.