Could ETH Influence ARB’s Potential for 200% Gains by January 2025?

• As Ethereum (ETH) gains momentum, Arbitrum (ARB) stands poised for significant price advancements, potentially achieving a 200% rally through early 2025.

• ARB’s recent price movements suggest it may be undervalued, with analysts forecasting a surge to its 2024 highs as institutional interest grows.

• “$ARB has had a great rally but is still fundamentally undervalued. Trades at a fraction of Sui, AVAX, Tron, etc., but has them beat on volume and TVL by multiples,” stated Andrew Kang from Mechanism Capital.

This article explores how ETH’s future trajectory could significantly impact ARB’s potential, with projections of up to 200% gains backed by key catalysts.

Understanding ARB’s Bullish Potential Factors

Recent analysis indicates that ARB has emerged as a leading contender among altcoins, significantly driven by institutional investments and developments in Ethereum’s interoperability solutions. Experts believe these factors could propel ARB considerably in the market.

Price Target and Institutional Interest

According to Blockworks Research, Arbitrum’s new priority transaction ordering system known as Timeboost is anticipated to increase network activity and, consequently, the demand for ARB tokens. As more financial institutions show interest, analysts like Ryan Connor suggest that ARB may be mispriced, creating opportunities for substantial price appreciation.

Technical Analysis and Market Forecasts

Currently, ARB is testing a crucial resistance level around $1.2. A breakout above this threshold could pave the way for a notable rally. The medium-term target for ARB is set at approximately $1.9, representing an 80% return if achieved. A rise to its previous 2024 peak of around $2.4 could lead to a more striking 127% gain.

Source: ARB/USDT, TradingView

The Role of Ethereum in ARB’s Future

Ethereum’s trajectory plays a pivotal role in ARB’s potential price movement. Analysts are optimistic that ETH’s value could reach an all-time high by January 2025, bolstering ARB’s prospects in tandem. This assumption is reinforced by the recent nomination of pro-crypto Paul Atkins as SEC Chair, which may lead to a favorable regulatory environment for Ether and Layer 2 solutions.

“Historically, ETH does not usually put in a new all-time high until January of the post-halving year. This sentiment is also reflected in the options market, where ETH risk reversals are skewed toward calls only from January onwards,” notes QCP Capital.

Source: Santiment

Conclusion

In summary, ARB seems to be set for a significant bullish phase, potentially exceeding 200% gains, primarily driven by favorable conditions within the Ethereum ecosystem and strengthened institutional demand. However, it is essential to monitor ETH’s price movements closely, as any downturn could result in adverse effects on ARB’s projections.