To assess Ethereum's price volatility using the Bollinger Band Width (BBW) indicator, follow these steps. BBW measures the distance between the upper and lower Bollinger Bands, reflecting volatility. When BBW narrows, it signals low volatility, often preceding a breakout as price consolidates. Conversely, a widening BBW indicates rising volatility, typically during strong trends or sharp corrections. For Ethereum, plot BBW alongside price action on a chart. A dropping BBW below its historical average (e.g., 20-period SMA) suggests a potential explosive move, while an expanding BBW above average confirms heightened volatility. Combine this with volume analysis—low volume with narrow BBW may hint at an imminent surge. Monitor Ethereum’s market conditions, like news or network activity, to contextualize BBW signals for better trading decisions. 0 reply
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