Arbitrum (ARB), a layer-2 project built on Ethereum, has been facing significant selling pressure due to the recent decline of Ethereum (ETH). Despite gaining momentum earlier, ARB has lost its upward trajectory, causing concern among investors. As of now, ARB is trading at $1.12, and its future is heavily influenced by Ethereum's performance and broader market trends.

To rebound from this critical zone, ARB needs to stabilize above $1.23, which could lead to a bullish surge targeting $1.45, $1.61, $1.7, $1.8, $2.10, $2.27, and $2.42 in succession. However, if the selling pressure continues, ARB might face pullbacks to $0.99, $0.80, and $0.73, potentially triggering a new bearish scenario. The decline of Ethereum has significantly impacted ARB, leading to increased selling pressure. Despite being a layer-2 project, ARB has been unable to maintain its value during market downturns.

The weakening Ethereum narrative has led to a decline in several altcoins, with ARB being notably affected. Investors are closely watching key levels, and market trends are being scrutinized for any signs of a potential rebound. The current market sentiment is cautious, with investors weighing the potential risks and rewards of investing in ARB.

In addition to Ethereum's performance, ARB's future is also dependent on the broader crypto market trends. The recent decline in Bitcoin (BTC) and other major cryptocurrencies has led to a decrease in investor confidence, further exacerbating the selling pressure on ARB.

Investors should closely monitor key levels and be prepared for potential volatility. Thorough research and risk management are essential when navigating the crypto markets. As the space continues to evolve, it is crucial to stay informed and adapt to new developments and market conditions.

In conclusion, Arbitrum (ARB) is at a critical juncture, and its future is heavily dependent on Ethereum's performance and broader market trends. A rebound from the current critical zone could spark a bullish surge, but continued losses in Ethereum and the inability of layer-2 solutions to gain traction could deepen ARB's decline. Investors must be cautious and prepared for potential volatility in the crypto markets, and a comprehensive analysis of key levels, market trends, and investor sentiment is essential to make informed investment decisions.