The altcoin market has been experiencing a period of consolidation over the past three weeks, following the lead of Bitcoin and Ethereum. However, Ethereum's resilience above the $3600 support level has boosted buyer confidence, preventing a major correction in Layer 2 cryptos.

Ethereum Whales Accumulate

According to IntoTheBlock, large Ethereum holders, known as "whales," have significantly increased their holdings, recording a net inflow of 267,000 ETH, the highest daily accumulation since March. This surge in ETH holdings among large investors suggests growing confidence in the asset's future value.

Layer 2 Solutions Transform Ethereum's Economy

As Ethereum evolves, layer-2 solutions like Arbitrum, Optimism, and Base are transforming its economic landscape by offering lower transaction fees and fostering a diverse application ecosystem. This shift has led to a notable decrease in Ethereum's transaction fees to a six-month low, demonstrating the impact of these scalable solutions.

Arbitrum's Price Action

Arbitrum, a Layer-2 scaling solution, has been trading sideways over the past two months, trying to hold its ground above the $0.93 support level. A potential rebound from this support could uplift the asset by 30% to challenge the key resistance of $1.27. A successful breakout from this resistance would signal a major trend reversal, assisting ARB's price to chase higher targets of $1.6 and $2.27.

Conclusion

As Ethereum whales accumulate and layer-2 solutions transform the network's economy, Arbitrum and other layer-2 cryptos are primed for explosive growth. With increasing confidence in Ethereum's future value and the impact of scalable solutions, these altcoins are poised for a significant upswing, offering investors and traders new opportunities in the cryptocurrency market.