Crypto analyst Jason Pizzino believes Ethereum (ETH) is setting up for a potential rally.
Key Indicator: Average True Range (ATR)
Pizzino highlights ETH’s Average True Range (ATR) as an indicator suggesting a breakout is imminent. ATR measures volatility by showing an asset’s trading range over a specified period.
Triangle Formation
Pizzino observes that ETH is trading within a triangle structure, which is often seen as a continuation pattern. This indicates that the asset is experiencing price compression before a significant move in the direction of the prevailing trend.
Watch for Abrupt Breakout
Pizzino warns that ETH’s ATR may fall as it trades within the triangle. However, this could be a sign that the asset is about to break out abruptly, leaving traders who are not already invested behind.
Current Price and Outlook
At the time of writing, ETH is trading at $3,502, showing a slight increase over the past 24 hours. Pizzino believes that ETH is still on track for a bullish move and is performing well in line with other strong altcoins.
