Crypto analyst Crypto Patel has predicted that the Ethereum layer-2 Arbitrum could see an increase of 7,400%, creating a bullish outlook for the altcoin. He also revealed the key levels that investors should look out for as a position for this potential rally.
Arbitrum Eyes 7,400% is running with a 96% price drop from ATH
In one X messageCrypto Patel predicted that Arbitrum could rise 7,400, with the price currently 96% off its all-time high (ATH) of $2.40. He noted that ARB got stuck in a brute descending channel after the 2024 top, leading to the 96% crash of the ATH. The analyst added that retail investors have fallen into bull traps with every small upturn before the next decline.
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Commenting on the current Arbitrum price action, Crypto Patel revealed that the price is above a high-risk accumulation zone on a higher time frame after the liquidation phase. He added that ARB has shown the first real sign of strength, with the price up 57% from the low. This higher time frame is risky accumulation zone specifically, it is between $0.095 and $0.07.
Crypto Patel stated that market participants should look for a breakout and retest of the declining trendline. There could also be a liquidity move below the dynamic trendline. Meanwhile, the bullish structure remains valid only above the $0.27 chargeback. A void can occur at a two-week close below $0.065 for Arbitrum.
The analyst also mentioned that descending channels, as in this case, often produce multiple false reversals before the real one occurs. Crypto Patel reiterated the key levels to watch, including the higher time frame demand zone, the breakdown zone, and the trend recovery zone. In the meantime, the bull cycle targets are $0.27, $0.50, $1.2, $2.5 and $5.
ARB’s price action is similar to 2020’s price action
In one X messagecrypto analyst Michaël van de Poppe stated that Arbitrum is one of many altcoins showing similarities in price action to early 2020. He noted a strong bullish divergence on the daily time frame, indicating that the altcoin is poised to record a bullish reversal.
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He highlighted other positives for Arbitrum, such as a clear break above the 21-day moving average (MA). At the same time, volume picks up and momentum increases, just like other tokens in the Ethereum ecosystem wake up too. Michaël van de Poppe noted that the breakout above the 21-day MA is the first time since the summer of 2025. He added that ARB is currently in the phase where it is trying to build a base.
At the time of writing, Arbitrum price is trading around $0.1241, down more than 2% in the last 24 hours, according to facts from CoinMarketCap.
Featured image from Adobe Stock, chart from Tradingview.com