A popular crypto analyst is predicting a potential upswing for Ethereum (ETH), the top altcoin in the market.
In a recent video update, crypto strategist Jason Pizzino, with a subscriber base of 329,000 on YouTube, suggests that one indicator points to the leading smart contract platform gearing up for a possible rally.
Pizzino highlights ETH’s average true range (ATR), a volatility measurement that shows an asset’s trading range over a specific period, as a sign of an impending 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 predicts that Ethereum’s ATR will decrease as ETH trades within a triangle structure. A triangle is usually seen as a continuation pattern where an asset experiences price compression before a big move in the direction of the prevailing trend.
Pizzino also warns traders to keep an eye on Ethereum’s ATR, as ETH may suddenly surge, catching them off guard.
“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.”
As of the time of writing, Ethereum is trading at $3,502, representing a slight increase over the last 24 hours.
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