Why Arbitrum Price Pumps Up Today? Read the Analysis

ARB price today surged more than 18%, drawing attention from traders, analysts, and investors. This rally did not happen by chance. 

A combination of strong market sentiment around Ethereum, a major acquisition announcement, and a clean technical breakout have all played a role in pushing ARB higher. 

With both the charts and the fundamentals showing strength, the question now is whether this move has room to continue or if it is due for a short-term cooldown.

Ethereum Strength Fuels Layer 2 Tokens

On August 12, 2025, U.S.-listed spot Ethereum ETFs saw a record $1 billion in net inflows, the largest single-day amount since their launch. 

This massive interest from both institutional and retail investors boosted Ethereum’s price momentum and, in turn, lifted many tokens built on its network. Arbitrum, as one of Ethereum’s leading Layer 2 scaling solutions, benefited directly from this surge in demand.

Other Ethereum ecosystem tokens also enjoyed strong gains, with GTC up 37.9%, EIGEN gaining 17.47%, ZK rising 15.24%, ETHFI climbing 12.52%, and OP adding 9.77%. 

Ethereum itself is now only 2.7% below its all-time high, and analysts believe its strength is likely to keep the Layer 2 sector in focus.

Read also: Camelot DEX: The Arbitrum-Based Powerhouse Driving Next-Gen DeFi

ZeroDev Acquisition Adds Fundamental Strength

Offchain Labs, the team behind Arbitrum, announced the acquisition of ZeroDev, a smart account infrastructure provider that supports over 5 million wallets. 

This move is significant because ZeroDev’s technology removes the need for seed phrases, allows gasless transactions, and enables smoother cross-chain interactions.

Such features could attract more mainstream users to decentralized finance and blockchain gaming on Arbitrum. ZeroDev’s existing partnerships with ApeChain and Crossmint suggest that developer activity in the Arbitrum ecosystem could accelerate. 

This kind of infrastructure upgrade tends to have a lasting impact on a token’s adoption and market perception.

Read also: Arbitrum (ARB) Price Prediction 2025–2030: A Comprehensive Analysis

Technical Breakout Pushes ARB Higher

From a technical perspective, ARB price has broken above the key resistance level of $0.50 after forming a bullish double bottom pattern. 

This formation began when ARB bounced from support near $0.4578, retested the same level, and then pushed upward again. The breakout above the neckline at $0.50 confirmed the bullish setup.

Daily chart momentum shows a strong move backed by increasing trading volume. The MACD has turned positive with a bullish crossover, while the RSI on the 4-hour chart sits at around 79, indicating overbought conditions. 

Immediate resistance is seen at $0.55–$0.56, with the next target potentially at the $0.60 level. Support now lies at $0.50 and $0.48.

Read also: What is Arbitrum Sepolia Faucet and How to Join?

Market Context and ARB Price Prediction

According to market data, ARB is currently trading around $0.5437, with a 128% jump in daily trading volume. The token is the second-biggest gainer in the market today. 

If buying momentum continues and resistance levels are cleared, analysts see a possible move toward $0.7747 in the medium term.

However, with short-term indicators showing overbought signals, a brief consolidation or pullback would not be surprising before the next leg higher. Longer term, ARB’s performance will likely remain closely tied to Ethereum’s Layer 2 growth and network adoption.

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FAQ

What is Arbitrum?

Arbitrum is a Layer 2 scaling solution for Ethereum. It uses a technology called "optimistic rollups" to make transactions faster, cheaper, and more scalable. This allows developers to build decentralized applications (DApps) with lower fees and quicker confirmations.

Is Arbitrum a good buy?

The current market sentiment for Arbitrum (ARB) is "neutral bearish" at 37%, with a "Fear & Greed Index" score of 68 (Greed). Our price prediction suggests the price could decrease by as much as 20.5% by August 14, 2025.

Can Arbitrum reach $100?

It is highly unlikely for Arbitrum (ARB) to reach a price of $100 in the near future. While the crypto market is unpredictable, the chances of it reaching that price within the next few decades are considered very low.

Is Arbitrum an ETH?

No, Arbitrum is not Ethereum, but it is closely connected. ARB is the utility token for the Arbitrum network, which is a Layer 2 network built on top of Ethereum.

Why is Arbitrum so cheap?

Arbitrum is cheap because it uses "optimistic rollups." This technology bundles hundreds of transactions into a single proof that is then submitted to the Ethereum network. By doing this, it reduces the amount of work on the main Ethereum network, making transactions faster and cheaper.

Who owns Arbitrum?

Arbitrum was founded by Ed Felten, who was a former deputy Chief Technology Officer for President Obama, as well as Steven Goldfeder (CEO) and Harry Kalodner (CTO).