Hi Ion,
You are right to be concerned with the several watts per diode dissipation with diodes passing Amperage..
But I am proposing using them in the 5V output circuit of the ACS712.
They would have almost no current. and would give your digital pin a 2.5V to 5V swing.
If the peak Voltage was a little too high for your logic levels then add a “Voltage divider (= two resistors).
-Adam-