OPEN-SOURCE SCRIPT
Ethereum Logarithmic Regression Bands
Overview
This indicator displays logarithmic regression bands for Ethereum. Logarithmic regression is a statistical method used to model data where growth slows down over time. I initially created these bands in 2021 using a spreadsheet, and later coded them in TradingView in 2022. Over time, the bands proved effective at capturing bull market peaks and bear market lows. In 2025, I decided to share this indicator because I believe these logarithmic regression bands offer the best fit for the Ethereum chart.
How It Works
The logarithmic regression lines are fitted to the Ethereum (ETHUSD) chart using two key factors: the 'a' factor (slope) and the 'b' factor (intercept). The formula for logarithmic regression is 10^((a * ln) - b).
How to Use the Logarithmic Regression Bands
1. Lower Band:
The lower (blue) band forms a potential support area for Ethereum’s price. Historically, Ethereum has found its lows within this band during past market cycles. When the price is within the lower band, it suggests that Ethereum is undervalued.
2. Upper Band:
The upper (red) band forms a potential resistance area for Ethereum’s price. The logarithmic band is fitted to the past two market cycle peaks; therefore, there is not enough historical data to be sure it will reach the upper band again. However, the chance is certainly there! If the price is within the upper band, it indicates that Ethereum is overvalued and that a potential price correction may be imminent.
This indicator displays logarithmic regression bands for Ethereum. Logarithmic regression is a statistical method used to model data where growth slows down over time. I initially created these bands in 2021 using a spreadsheet, and later coded them in TradingView in 2022. Over time, the bands proved effective at capturing bull market peaks and bear market lows. In 2025, I decided to share this indicator because I believe these logarithmic regression bands offer the best fit for the Ethereum chart.
How It Works
The logarithmic regression lines are fitted to the Ethereum (ETHUSD) chart using two key factors: the 'a' factor (slope) and the 'b' factor (intercept). The formula for logarithmic regression is 10^((a * ln) - b).
How to Use the Logarithmic Regression Bands
1. Lower Band:
The lower (blue) band forms a potential support area for Ethereum’s price. Historically, Ethereum has found its lows within this band during past market cycles. When the price is within the lower band, it suggests that Ethereum is undervalued.
2. Upper Band:
The upper (red) band forms a potential resistance area for Ethereum’s price. The logarithmic band is fitted to the past two market cycle peaks; therefore, there is not enough historical data to be sure it will reach the upper band again. However, the chance is certainly there! If the price is within the upper band, it indicates that Ethereum is overvalued and that a potential price correction may be imminent.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.