The price of Ethereum is testing an epic breakout point. Today, in overnight trading, the third test of 2121 USD in a period of 7 months took place. To break out or not to break out, is the million dollar question top of mind of crypto investors. Here is a simple trick that can bring some peace of mind: December 1st is a breakout milestone, here is why.
First, let’s review the Ethereum chart.
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That said, anyone who can read a chart will see a bullish reversal. What is interesting is that the reversal is perfectly respected. We can see this by price behavior around the 50% retracement level (fine purple line). The specific price point is 2121 USD. In 2023, this specific level was tested twice, overnight a third time, and that very specific price point was rejected in each of the 3 occurrences.
The point is this – the rejection occurred at a very, very specific price point which coincides with the most important retracement level (50%). This implies that the reversal is very reliable and dominant.
Now, back to the original question, how to know whether the breakout will finally occur?
That’s where we have to switch to the x-axis of the chart, the most underexposed part of the chart.
As seen, the previous attempt, back in April, was rejected after 5 days. That’s a number in the Fibonacci sequence. The current attempt is ongoing for 15 days, not a Fibonacci numbers.
What we do know from experience is that breakouts attempts tend to fail after a number of days that coincide with a Fibonacci number. In the current setup, as 15 days is not a number from the Fibonacci series, the next days in the series, being 21, coincides with December 1st, 2023.
That’s why, Dec 1st (+/- 1day) is the milestone for the ongoing breakout attempt. Adding price info to this, results in this statement:
- Ethereum has an unique opportunity to clear 2121 USD and stage a secular breakout;
- if it does so before Dec 1st it will be a high probability confirmed breakout;
- however if price is rejected until then and moves lower on Dec 1st or Dec 2nd, it will not likely break out for at least a month or two.
That’s how we combine price and timeline readings, and more detail across various altcoins is shared in our weekly alerts in our premium crypto research service >>
