Top Layer 2 Tokens Set to Rise Once Ethereum (ETH) Price Reaches $3000

The post Top Layer 2 Tokens Set to Rise Once Ethereum (ETH) Price Reaches $3000 appeared first on Coinpedia Fintech News

Layer 2 tokens often derive their value from the Ethereum ecosystem, as they rely on Ethereum for security and settlements. Whenever the ETH price rises, confidence in the broader network increases, often boosting demand for Layer 2 solutions due to scalability needs. Conversely, falling ETH prices can reduce activity and investor interest across the ecosystem, impacting Layer 2 token valuations. Here are some of these tokens, which are waiting for the Ethereum price to secure levels above $3000 that could push the prices of these Layer 2 tokens beyond the bearish range.

Arbitrum (ARB)

Arbitrum is a leading Layer-2 scaling solution for Ethereum, designed to improve transaction speed and reduce fees using optimistic rollup technology. By offloading computation from the main Ethereum chain, it enables faster, cheaper decentralized applications while maintaining Ethereum’s security. Its native token, ARB, powers governance and ecosystem incentives, is trading within the lowermost price range and is waiting for the right time to trigger a breakout.

The historical price action of Arbitrum suggests the price has reached the end of the consolidation and hence a breakout should be imminent. The token is an inch close to the edge of the falling wedge, while the RSI is also about to reach the lower threshold. This suggests the ARB price , which is facing bearish pressure, is expected to drop close to $0.25, which may trigger a rebound and test the higher ranges.

ZKsync (ZK)

ZKsync is a Layer 2 scaling solution for Ethereum that uses zero-knowledge rollups to offer fast, low-cost transactions without compromising security. By processing transactions off-chain and submitting concise proofs to Ethereum, zkSync enhances scalability. Its native token, ZK, supports governance and incentivizes participation. Meanwhile, the ZK price is expected to undergo more bearish action.

The recent price action of ZK suggests that some selling pressure has still made some ground, as the technicals suggest the token could break the support soon. The price is trading within a decisive symmetrical triangle and may lose the support as the RSI is yet to mark the lower threshold. Besides, the Ichimoku cloud suggests a drop in the buying volume, causing a pullback but after reaching the demand zone, a strong rebound to $0.1 is imminent.

StarkNet (STRK)

StarkNet is a Layer 2 scaling solution for Ethereum that leverages STARK-based zero-knowledge rollups 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 covering transactions. The token is accumulating along the lower support and hence a rebound could be imminent.

As seen in the above chart, the STRK price is testing the lower support of the parallel channel. The price has dropped below the 50-day MA, which has circulated bearish clouds over the crypto. The RSI is about to reach the lower threshold, which may attract significant liquidity that may help the price to trigger a rebound and rise back above the 50-day MA and eventually reach $0.2.

Optimism (OP)

Optimism 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, powers governance, funds ecosystem development and supports protocol upgrades. Similar to the other Layer 2 tokens, the OP price is also testing the lower support, which hints towards a rebound.

As mentioned before, the OP price is testing the lowermost support level and hence is believed to trigger a rebound anytime from now. The DMI is showing signs of the bullish reversal as the ADX is heading towards the lower threshold that may trigger a rebound, which may further initiate a bullish crossover between the +Di & -Di. With this, the ichimoku cloud may also undergo a bullish crossover that may elevate the Optimism price back above $1.