Ethereum’s Alphabet: Predictive Price Chart Patterns Discovered by a Neural Network

Based upon the recent work of Dacheng Xiu's team at the University of Chicago, we demonstrate that we can repurpose a consumer-level character recognition neural network to recognize price chart patterns in the Ethereum cryptocurrency for the purpose of forecasting short term (small N days) bullish/bearish signals (binary) for the same currency. Chart patterns are machine-interpreted only; any prior knowledge or biases about chart patterns are not applied in this study. Out of sample forecasts are found to be notably greater than 50% accurate and statistically significant for a limited range of days forward.