Indicator Suggesting Ethereum Winding Up for Move to the Upside, According to Analyst Jason Pizzino
A closely followed crypto analyst says that the top altcoin Ethereum (ETH) may be gearing up for a swing to the upside.
In a new video update, crypto strategist Jason Pizzino tells his 329,000 YouTube subscribers that one indicator suggests the leading smart contract platform is gearing up for rallies.
According to Pizzino, ETH’s average true range (ATR) – an indicator that measures volatility by showing an asset’s trading range over a specified period – is hinting at an approaching breakout.
“Ethereum [is] looking pretty good – putting in lower highs and higher lows at the moment. We have covered the average true range as another signal that the market is winding up for another move to the upside.
So we’re watching the ranges of the bars contract and they typically go dead for several weeks, maybe even months, but as we get towards the end of the bull market, these periods get shorter and shorter.”
Looking at the trader’s chart, he seems to predict that Ethereum’s ATR will fall as ETH trades within a triangle structure. A triangle is typically seen as a continuation pattern where an asset witnesses price compression before a big move in the direction of the prevailing trend.
Pizzino goes on to say that traders should be on the lookout for Ethereum’s ATR as he says ETH may abruptly fly and leave them sidelined.
“And that is where things get very wild – if you’re not in, that can destroy your portfolio because you’re trying to get in and it just takes off without you…
At the moment for ETH, everything still looks on track and it’s playing ball with the other strong altcoins.”
Ethereum is trading for $3,502 at time of writing, a marginal increase during the last 24 hours.
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