Ethereum Cryptocurrency Entry Point and Trend Prediction using Bitcoin Correlation and Multiple Data Combination

Deep learning methods have achieved significant success in various applications, including trend signal prediction in financial markets. However, most existing approaches only utilize price action data. In this paper, we propose a novel system that incorporates multiple data sources and market correlations to predict the trend signal of Ethereum cryptocurrency. We conduct experiments to investigate the relationship between price action, candlestick patterns, and Ethereum-Bitcoin correlation, aiming to achieve highly accurate trend signal predictions. We evaluate and compare two different training strategies for Convolutional Neural Networks (CNNs), one based on transfer learning and the other on training from scratch. Our proposed 1-Dimensional CNN (1DCNN) model can also identify inflection points in price trends during specific periods through the analysis of statistical indicators. We demonstrate that our model produces more reliable predictions when utilizing multiple data representations. Our experiments show that by combining different types of data, it is possible to accurately identify both inflection points and trend signals with an accuracy of 98%.

@article{ZAAR2023,
  title     = {Ethereum Cryptocurrency Entry Point and Trend Prediction using Bitcoin Correlation and Multiple Data Combination},
  journal   = {International Journal of Advanced Computer Science and Applications},
  volume    = {14},
  number    = {5},
  year      = {2023},
  publisher = {The Science and Information Organization},
  author    = {Abdellah EL ZAAR and Nabil BENAYA and Hicham EL MOUBTAHIJ and Toufik BAKIR and Amine MANSOURI and Abderrahim EL ALLATI},
  doi       = {10.14569/IJACSA.2023.0140506},
  url       = {https://doi.org/10.14569/IJACSA.2023.0140506}
}