Ethereum's Market Behavior on Dec. 27, 2023
Ethereum's market behavior on Dec. 27, 2023 presents a complex tapestry of signals for traders and investors alike. Oscillating within a 24-hour price range of $2,189 to $2,290, Ethereum demonstrated a consolidation phase, subtly hinting at both potential gains and imminent cautions. As the market capitalization holds at $273 billion with significant trading volume, the second leading crypto asset's future seems as volatile as it is promising.
Ethereum Price and Market Analysis
Ethereum (ETH) stands at a price of $2,278 with a trading volume of $15.34 billion over the past 24 hours. ETH/USD oscillators and moving averages depict a market in a state of neutrality with a slight bias toward bullishness. The relative strength index at 55.9 and momentum at 87.8 suggest cautious optimism among traders.
The array of oscillators like the Stochastic (64.5), commodity channel index (3.7), and moving average convergence divergence (MACD) level (34.4) predominantly indicate a neutral stance. However, the momentum oscillator signals positivity, suggesting an undercurrent of bullish sentiment that might influence upcoming price movements.
The moving averages (MAs) are overwhelmingly in the bullish zone across various time frames, from short-term 10-day to long-term 200-day averages. This alignment indicates a strong underlying support for ether's price, hinting at the potential for an upward trajectory.
Ethereum Price Analysis: Daily and 4-Hour Chart
The daily chart elucidates a fluctuating trend, with no distinct direction and the price oscillating between support at approximately $1,907 and resistance near $2,407. The absence of significant volume spikes and a clear pattern suggests a period of consolidation and indecision in ether markets.
A more detailed 4-hour chart reveals a recent uptrend marked by a large spike, indicating a short-term bullish sentiment. The increased volume accompanying this movement suggests a growing interest that might translate into a sustained upward trend as well. For those looking to capitalize on these trends, potential entry points could be identified during slight retracements, maintaining above short-term support levels. Exit points might be just below the recent resistance level, capturing short-term gains while managing risks effectively.
Bull and Bear Verdict
Bull Verdict: The prevailing buying signals across most moving averages, coupled with the slight uptick in momentum, provide a cautiously optimistic outlook for Ethereum. The resilience in maintaining above critical support levels and the recent upswing observed in the 4-hour chart accentuates a bullish sentiment.
Bear Verdict: Despite the current buy signals from moving averages and momentary uptrend in the 4-hour chart, the overall market's indecision and neutrality cannot be overlooked. The proximity to key resistance levels without a definitive breakout and the oscillators' predominantly neutral stance hint at potential exhaustion in buying pressure.
Register your email here to get weekly price analysis updates sent to your inbox.
What do you think about ether's market action on Wednesday morning? Share your thoughts and opinions about this subject in the comments section below.
Frequently Asked Questions
What are the benefits to having a gold IRA
It is best to put your retirement money in an Individual Retirement Account (IRA). It's not subject to tax until you withdraw it. You control how much you take each year. There are many types to choose from when it comes to IRAs. Some are better suited for college students. Others are made for investors seeking higher returns. Roth IRAs, for example, allow people to contribute after they turn 59 1/2. They also pay taxes on any earnings when they retire. The earnings earned after they withdraw the funds aren't subject to any tax. This type of account might be a good choice if your goal is to retire early.
An IRA with a gold status is like any other IRA because you can put money into different asset classes. Unlike a regular IRA that requires you to pay taxes on the gains you make while you wait to access them, a gold IRA does not have to do this. People who want to invest their money rather than spend it make gold IRA accounts a great option.
Another advantage to owning gold via an IRA is the ease of automatic withdraws. This eliminates the need to constantly make deposits. You could also set up direct debits to never miss a payment.
Finally, the gold investment is among the most reliable. Because it isn't tied to any particular country its value tends be steady. Even in times of economic turmoil gold prices tend to remain stable. It is therefore a great choice for protecting your savings against inflation.
Can I have physical gold in my IRA
Gold is money, not just paper currency or coinage. It is an asset that people have used over thousands of years as money, and a way to protect wealth from inflation and economic uncertainties. Gold is a part of a diversified portfolio that investors can use to protect their wealth from financial uncertainty.
Many Americans now invest in precious metals. Although owning gold does not guarantee that you will make money investing in it, there are many reasons to consider adding gold into your retirement portfolio.
Gold has historically performed better during financial panics than other assets. Gold prices rose nearly 100 percent between August 2011 and early 2013, while the S&P 500 fell 21 percent over the same period. During turbulent market conditions gold was one of few assets that outperformed stock prices.
The best thing about gold investing is the fact that there's virtually no counterparty risk. Your stock portfolio can fall, but you will still own your shares. But if you own gold, its value will increase even if the company you invested in defaults on its debt.
Finally, gold is liquid. This means that you can sell gold anytime, regardless of whether or not another buyer is available. Because gold is so liquid compared to other investments, buying it in small amounts makes sense. This allows you take advantage of the short-term fluctuations that occur in the gold markets.
What precious metal is best for investing?
This question is dependent on the amount of risk you are willing and able to accept as well as the type of return you desire. Although gold has been considered a safe investment, it is not always the most lucrative. For example, if your goal is to make quick money, gold may not suit you. If patience and time are your priorities, silver is the best investment.
If you don't care about getting rich quickly, gold is probably the way to go. Silver may be a better option for investors who want long-term steady returns.
How Much of Your IRA Should Be Made Up Of Precious Metals
It is important to remember that precious metals can be a good investment for anyone. They don't require you to be wealthy to invest in them. You can actually make money without spending a lot on gold or silver investments.
You might also be interested in buying physical coins, such bullion rounds or bars. Also, you could buy shares in companies producing precious metals. Your retirement plan provider may offer an IRA rollingover program.
Regardless of your choice, you'll still benefit from owning precious metals. They offer the potential for long-term, sustainable growth even though they aren’t stocks.
And unlike traditional investments, they tend to increase in value over time. If you decide to make a sale of your investment in the future, you will likely realize more profit than with traditional investments.
Can I buy or sell gold from my self-directed IRA
Although you can buy gold using your self-directed IRA account, you will need to open an account at a brokerage like TD Ameritrade. If you already have a retirement account, funds can be transferred to it.
Individuals can contribute as much as $5,500 per year ($6,500 if married filing jointly) to a traditional IRA. Individuals are allowed to contribute $1,000 each ($2,000 if married or filing jointly) to a Roth IRA.
You should consider buying physical gold bullion if you decide to invest in it. Futures contracts are financial instruments that are based on gold's price. You can speculate on future prices, but not own the metal. But physical bullion refers to real gold and silver bars you can carry in your hand.
Is gold buying a good retirement option?
While buying gold as an investment may seem unattractive at first glance it becomes worth the effort when you consider how much gold is consumed worldwide each year.
The best form of investing is physical bullion, which is the most widely used. However, there are many other ways to invest in gold. Research all options carefully and make an informed decision about what you desire from your investments.
If you're not looking to secure your wealth, it may be worth considering purchasing shares in mining equipment or companies that extract gold. If you are looking for cash flow from your investment, buying gold stocks will work well.
ETFs allow you to invest in exchange-traded funds. These funds give you exposure, but not actual gold, by investing in gold-related securities. These ETFs usually include stocks of precious metals refiners or gold miners.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
External Links
finance.yahoo.com
bbb.org
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
How To
3 Ways To Invest in Gold For Retirement
It's essential to understand how gold fits into your retirement plan. You can invest in gold through your 401(k), if you have one at work. You might also be interested to invest in gold outside the workplace. A custodial account can be opened by a brokerage firm like Fidelity Investments if you already have an IRA. If you don't have any precious metals yet, you might want to buy them from a reputable dealer.
These are three simple rules to help you make an investment in gold.
- You can buy gold with your cash – No need to use credit cards or borrow money for investment financing. Instead, instead, transfer cash to your accounts. This will protect your against inflation and increase your purchasing power.
- Physical Gold Coins You Should Buy – Physical gold coins should be purchased over a paper certificate. Physical gold coins can be sold much faster than paper certificates. You don't have to store physical gold coins.
- Diversify Your Portfolio. Never place all your eggs in the same basket. This means that you should diversify your wealth by investing in different assets. This reduces risk and allows you to be more flexible during market volatility.
—————————————————————————————————————————————————————————————-
By: Jamie Redman
Title: Ethereum Technical Analysis: Ether Bulls Clench the Reins and Charge Toward Resistance
Sourced From: news.bitcoin.com/ethereum-technical-analysis-ether-bulls-clench-the-reins-and-charge-toward-resistance/
Published Date: Wed, 27 Dec 2023 14:20:09 +0000
Related posts:
Ethereum Technical Analysis: ETH Bulls Break Upper Resistance Levels
Ethereum Technical Analysis: ETH Faces Downward Pressure; Bearish Trends Emerge Amidst Market Volatility
Ethereum Technical Analysis: ETH Hangs Above $2K Range Amid 3% Drop
Ethereum Price Analysis: Bearish and Bullish Signals in the Market
