ARB and ETC Approaches Falling Wedge Resistance – Could Breakout Spark a Rally?

Date: Wed, March 05, 2025 | 03:18 PM GMT

The cryptocurrency market has shown a strong recovery from the sharp sell-off earlier this week. Bitcoin (BTC) has jumped over 7%, while Ethereum (ETH) has surged 6% in the past 24 hours. A potential catalyst behind today’s upside momentum is the upcoming White House crypto summit under Trump’s administration on Friday, which has sparked renewed investor confidence.

Altcoins are following suit, with Arbitrum (ARB) and Ethereum Classic (ETC) gaining traction amid impressive gains. ARB is up 12%, while ETC has climbed 9%.

Source: Coinmarketcap

Both tokens are approaching critical resistance levels within their respective falling wedge patterns. A confirmed breakout could trigger a strong rally, unlocking significant upside potential.

Arbitrum (ARB) Analysis

ARB has been trading inside a falling wedge pattern since facing rejection at $1.23 in early December. A prolonged downtrend led the token to a low of $0.35, where it found solid support at the lower boundary of the wedge.

Arbitrum (ARB) Daily Chart/Coinsprobe (Source: Tradingview)

Currently, ARB has rebounded to $0.41 and is testing the upper wedge resistance. If a breakout occurs with strong volume confirmation, the next short-term target would be $0.51.

Beyond that, further bullish momentum could push ARB towards the 50-day moving average at $0.56 and a major resistance level at $0.67, representing a potential 60% upside. If ARB fails to break out, it could retest lower support before making another attempt.

Ethereum Classic (ETC) Analysis

Ethereum Classic (ETC) has been trading within a falling wedge pattern following a sharp rejection from its December 4 high of $41.75. The recent downtrend pushed ETC to a low of $17 on February 3, where it tested the wedge’s lower boundary.

Ethereum Classic (ETC) Daily Chart/Coinsprobe (Source: Tradingview)

Now, ETC has bounced back to $20 and is approaching the wedge resistance. A successful breakout and retest could propel ETC toward $21.94, followed by a move toward its 50-day moving average.

If momentum continues, ETC could rally toward $27.77 and eventually $29.26, representing a potential 47% upside. However, a rejection at the resistance level could lead to a pullback before another breakout attempt.

Final Thoughts

With both ARB and ETC approaching key breakout points, traders are watching closely for confirmation signals. The broader market trend will play a crucial role in determining their price trajectory. If Ethereum (ETH) maintains its recovery and Bitcoin dominance declines, altcoins like ARB and ETC could gain momentum for a breakout. However, failure to break resistance could delay the rally.

Traders should monitor volume, breakout confirmations, and Bitcoin price action before making decisions.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions in cryptocurrencies.