Arbitrum and Uniswap has been rallying following Ethereum with strong gains over the past week suggesting a begining of he altseason.
After the US SEC approved the spot Ether ETFs last week, Ethereum (ETH) and its ecosystem altcoins consolidated for a while before kickstarting the recent price rally. On Sunday, May 26, ETH price witnessed fresh bullish action surging to $4,000 extending its weekly gains to more than 28%. On the other hand, Bitcoin (BTC) price has been continuously facing downward pressure and failing to restore back above $70,000. However, the Ethereum rally has triggered fresh momentum in other Layer-2 coins and other altcoins which can see a strong move to the upside.
Uniswap Price Rally
Over the last week, the Ethereum-based decentralized exchange (DEX) Uniswap has witnessed strong activity. Uniswap’s native cryptocurrency UNI is up by a staggering 41% during the past week. As of press time, Uniswap is trading at $11.01 with a market cap of $6.59 billion.
The UNI/USDT pair faced resistance at $11.81 on May 26. However, if buyers maintain their positions without yielding much to the bears, the chances of breaking above $11.81 will increase. If successful, the pair could climb to $13.34 and then to $15.
Conversely, if the price declines and falls below $10, it will indicate aggressive profit-taking by the bulls. This could push the pair down to the 20-day EMA ($9.05) and postpone the next upward movement.
Photo: TradingView
Arbitrum
Along with Ethereum, the Layer 2 platform Arbitrum has also witnessed strong gains of 28% over the past week, There’s strong bullish action in the last 24 hours as well with the Arbitrum (ARB) price gaining an additional 12% and shooting past $1.25. Furthermore, the daily trading volume has also skyrocketed by 113% moving all the way to $850 million.
However, a small positive for the bulls is that they have kept the price above the 20-day EMA ($1.11). This enhances the likelihood of breaking above the resistance. If successful, the ARB/USDT pair could gain momentum and climb toward $1.60 and potentially reach $1.75.
This optimistic outlook will be invalidated if the price drops sharply and falls below $1.10, which could pull the price down to strong support around $0.90.
Photo: TradingView
Chainlink
Oracle service provider Chainlink (LINK) is another major competitor in the altcoin space. The LINK price has been currently hovering around the crucial resistance level of $17.3 over the past three days amid a tight fight between the bulls and the bears.
The upward-sloping 20-day EMA ($15.96) and the RSI above 62 indicate that the bulls are in control. There is minor resistance at $18.68, but if the bulls overcome this barrier, the LINK/USDT pair could advance to $20.74 and then to $22.
Photo: TradingView
Conversely, if the price turns down and stays below $17.32, it will suggest that the market has rejected the breakout. The pair could then decline to the 20-day EMA and subsequently to the 50-day SMA ($14.95).
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