Layer 2 tokens often derive their value from the Ethereum ecosystem, as they rely on Ethereum for security and settlement. The higher the price of ETH $ETH
, the more confidence there is in the wider network, and this often boosts demand for layer 2 solutions due to scalability needs. Conversely, a drop in ETH prices can reduce activity and utility for investors across the ecosystem, affecting the valuations of layer 2 tokens. Here are some of these tokens, waiting for the price of Ethereum to secure levels above $3000 that could push the prices of these layer 2 tokens beyond the downturn range. Arbitrum (ARB) is a key layer 2 scaling solution for Ethereum, designed to improve transaction speed and reduce fees using optimistic technology. By offloading computation from the main Ethereum chain, it enables faster and cheaper decentralized applications while maintaining Ethereum's security. Its native token, ARB, governs governance and ecosystem incentives, trading within the lower price range and waiting for the right moment to spark a breakout. Historical price action indicates that the price has reached the end of a consolidation, and thus a breakdown should be imminent. The token is an inch close to the edge of a falling wedge, while the RSI is about to reach the lower threshold. This suggests that the price of ARB, which is facing downward pressure, is expected to drop to around $0.25, potentially leading to a rebound and testing higher ranges. ZkSync (ZK) is a layer 2 scaling solution for Ethereum that uses rollups to provide fast and low-cost transactions without compromising security. By processing transactions off-chain and providing succinct proofs to Ethereum, ZkSync enhances scalability. The native token, ZK, supports governance and incentivizes participation. Meanwhile, the price of ZK is expected to undergo more downward movement. Recent action for ZK indicates that some selling pressure is still causing some ground, with indicators suggesting that the token could break support soon. The price is trading within a critical symmetrical triangle and may lose support as the relative strength index has not yet identified the lower threshold. Furthermore, the Ichimoku cloud suggests a decrease in buying volume, causing a pullback, but after reaching the demand area, a strong rebound to $0.1 is imminent. Starknet (STRK) is a layer 2 scaling solution for Ethereum that enhances zero-knowledge proofs to drive high throughput and low transaction costs. Developed by Starkware, it ensures security through cryptographic proofs. Its native token, STRK, is used for governance, staking, and transaction coverage. The token is accumulating along the lower support, and thus a rebound may be imminent. As illustrated in the chart above, the price of STRK is testing the lower support of the parallel channel. The price has dropped below the 50-day moving average, which has triggered bearish pullbacks on the crypto. The RSI is about to reach the lower threshold, which could attract significant liquidity that may help the price initiate a rebound and rise above the 50-day MA, ultimately reaching $0.2. Optimism (OP) is a layer 2 scaling solution for Ethereum that uses optimistic rollups to enhance transaction speed and reduce gas fees. It inherits Ethereum's security while enabling greater scalability. The native token, OP, governs protocol powers, funds ecosystem development, and supports protocol upgrades. Similar to other layer 2 tokens, the price of Optimism is also testing lower support, which hints at a potential rebound. As mentioned earlier, the reference price is testing the lower support level, and thus it is believed to lead to a rebound at any time now. The DMI shows signs of a bullish reversal as the ADX approaches the lower threshold, which could lead to a rebound, potentially initiating a bullish crossover between +DI and -DI. With this, the Ichimoku cloud may also undergo a bullish crossover that could lift the price of Optimism above $1.
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