The cryptocurrency market has faced a pullback following the recent release of the U.S. Producer Price Index (PPI) data, triggering selling pressures. Ethereum and Arbitrum are under pressure.
Ethereum's Decline and Market Impact
Ethereum's (ETH) price has dropped from over $4,700 to about $4,600, negatively impacting significant altcoins, including Arbitrum (ARB). Currently, ARB is down 5%, trimming its weekly gain to 23%.
Technical Analysis of Arbitrum
A classic *Cup and Handle* pattern has formed on ARB's daily chart, signaling a bullish continuation setup. Following the completion of the 'cup' and 'handle' consolidation, ARB broke the neckline resistance around $0.4850. This breakout spurred a sharp move to $0.57 before profit-taking occurred. The pullback has brought the price back towards the neckline zone around $0.4850, now functioning as a key support level.
Outlook for Arbitrum
If bulls manage to defend the $0.4850 support zone and momentum returns, ARB may make a renewed push towards its $0.57 high. A sustained breakout beyond that level would open the door to the next target near $0.70, representing nearly 40% potential upside from current prices. However, failure to hold above the neckline could invalidate the bullish structure and send ARB back into its previous consolidation range.
The current market situation in the cryptocurrency space suggests potential corrective movements, but the technical analysis of Arbitrum indicates the presence of supporting levels that could lead to price recovery in the coming days.
