The Ethereum price appears re-born, rejuvenated, and ready to scale new heights. Overall, traders are ecstatic about what’s on the table.
This could be due to the impressive performance on August 31. ETH prices shot above the consolidation buoyed by high trading volumes suggesting participation and interest from the wider community.
As things stand, Ethereum is one of the top performers in the top-5, outperforming Bitcoin on the same time frames.
Arbitrum is now Live on the Mainnet
Behind this upswing is news from Arbitrum.
The layer-2 scaling solution is now live on the mainnet. Offchain Labs, the developer, received $120 million in Series B funding led by Lightspeed Venture Partners.
With this, Offchain Labs is valued at $1.2 billion—a unicorn. Ethereum is slowed down by scaling troubles, a situation that competing modern layer-1s like Binance Smart Chain (BSC) are squeezing juice, using this as tailwinds.
Vitalik Buterin, in a call in 2020, tweaked the project’s roadmap saying it was time the platform’s developers focused their efforts on scaling options to address the high Gas fees.
Focus on Layer-2 as a Scaling Option for Ethereum
The launch of Arbitrum and Optimism—which is already in Alpha—signals positive development for Ethereum and the whole ecosystem.
DeFi dApps and even those in NFTs riding on Arbitrum will enjoy near-infinite scalability, near-zero transaction fees. They can host a large number of participants without necessarily straining the base layer.
It is an ideal advantage for Ethereum that would further entrench its role as a leader in smart contracting with a far better ecosystem and use base than competing platforms.
Ethereum Price Analysis
The Ethereum price is up seven percent on the last trading day, pulling away from the consolidation swap of the tail-end of August 2021.
Interestingly, the pullout is with high trading volumes and markedly, a rebound from the middle BB. Technically, every low may offer entries for optimistic buyers angling for $4.4k—or better in the subsequent sessions.
This possibility can’t be discounted considering the alignment of candlesticks in the daily chart. The breakout above $3.3k expressly confirms gains of August 2021, ensuring the bar ends strongly.
Accordingly, this signals strength in lower time frames, indicating trader and investor confidence in a platform whose fundamentals align with technical factors.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
If you found this article interesting, here you can find more Ethereum News