A closely watched crypto analyst says top altcoin Ethereum (ETH) may be gearing up for an upward move.
In a new video update, crypto strategist Jason Pizzino tells According to its 329,000 YouTube subscribers, one indicator suggests the leading smart contract platform is gearing up for rallies.
According to Pizzino, the average true range (ATR) of ETH is – an indicator that measures volatility by showing the trading range of an asset over a specified period of time – indicates an impending outbreak.
“Ethereum [is] looks pretty good – currently posting lower highs and higher lows. We discussed the average true range as an additional signal that the market is preparing for another move upward.
So we see bar prices contracting and typically they remain stagnant for several weeks, maybe even months, but as we approach the end of the bull market these periods become shorter and shorter.”
Looking at the trader’s chart, he seems to predict that Ethereum’s ATR will decline as ETH trades within a triangle structure. A triangle is typically viewed as a continuation pattern where an asset witnesses price compression before a major move in the direction of the prevailing trend.
Pizzino goes on to say that traders should be wary of Ethereum’s ATR, as he says ETH could abruptly skyrocket and sideline them.
“And that’s where it gets really wild – if you’re not in it, it can destroy your wallet because you try to get in and it just takes off without you…
At the moment, everything seems to still be on track for ETH and is playing along with the other strong altcoins.”
Ethereum is trading at $3,502 at the time of writing, up marginally over the past 24 hours.
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Generated image: Midjourney