Introduction
As of Dec. 18, 2023, the price of ethereum (ETH) is exhibiting a complex interplay of bearish and bullish signals across various technical indicators. This article will analyze the 4-hour and daily charts, oscillators, and moving averages to provide insights into the current market trajectory of ethereum.
4-Hour Chart Analysis
The 4-hour chart analysis reveals a predominantly bearish picture for ethereum. The formation of lower highs and lower lows indicates a classic indicator of bearish momentum. Although there has been a recent uptrend suggesting a potential short-term reversal, the overall downward trend suggests that this may be a temporary pause. Investors considering short positions should closely watch the key resistance point at $2,235 per ETH.
Daily Chart Analysis
The daily chart provides a broader historical context for ethereum's price movements. Previously, ethereum experienced an uptrend, reaching a peak around $2,407, before succumbing to the current downtrend. The break below the crucial support level of $2,100 indicates a strong bearish sentiment. Investors looking for potential entry points for both short and long-term positions should consider this longer-term perspective.
Oscillators
Oscillators, which are used to gauge market momentum and potential reversals, present a mixed outlook. The relative strength index (RSI) at 47.6, along with the Stochastic, commodity channel index (CCI), average directional index (ADI), and awesome oscillator, all hover in neutral to bearish territory. These indicators suggest a market in flux, with no clear directional bias, making investment decision-making complex.
Moving Averages
Moving averages (MAs) help identify trends and potential reversals over various timeframes. Currently, short-term moving averages like the 10-day and 20-day exponential and simple moving averages (EMAs and SMAs) signal negative sentiment, indicating immediate bearish pressure. On the other hand, longer-term averages such as the 50-day, 100-day, and 200-day EMAs and SMAs advise a positive outlook, reflecting a potential shift in the longer-term trend.
Market Balance
The confluence of these indicators suggests that ethereum's market is currently in a delicate balance. The bearish signals from the 4-hour chart and short-term moving averages are counterbalanced by the bullish outlook in the longer-term moving averages. Therefore, a cautious approach is recommended, especially for those considering long positions, as the market's bearish tilt remains significant.
Bull Verdict
Despite the current bearish indicators, the bull verdict for ethereum as of Dec. 18, 2023, is based on the strength of the longer-term moving averages and the historical resilience of the asset. The neutral positioning of oscillators like the RSI and ADI suggests a potential for trend reversal if the market can sustain above key support levels and breach the resistance near.
Bear Verdict
The bearish verdict for ethereum, based on the same data from Dec. 18, 2023, is primarily driven by the persisting downward trend on the 4-hour chart and the bearish indications from short-term moving averages. The failure to break above the key resistance level of $2,235 and the recent trend of lower highs and lower lows point towards continued bearish dominance. Unless there's a significant shift in market sentiment or a breakout above crucial resistance levels, the bearish trend is likely to prevail.
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Frequently Asked Questions
Should You Buy Gold?
Gold was a safe investment option for those who were in financial turmoil. Many people are shifting away from traditional investments like bonds or stocks to instead look toward precious metals such gold.
The gold price has been in an upward trend for the past few years, but it remains relatively low compared with other commodities like silver or oil.
Experts think this could change quickly. They believe gold prices could increase dramatically if there is another global financial crises.
They also point out that gold is becoming popular because of its perceived value and potential return.
Here are some things to consider if you're considering investing in gold.
- Consider whether you will actually need the money that you are saving for retirement. You can save money for retirement even if you don't invest in gold. However, you can still save for retirement without putting your savings into gold.
- You should also be aware of what you are getting into before you buy gold. There are many types of gold IRA accounts. Each offers varying levels of flexibility and security.
- Finally, remember that gold doesn't offer the same level of safety as a bank account. Losing your gold coins could result in you never being able to retrieve them.
Do your research before you buy gold. If you already have gold, make sure you protect it.
Is gold a good IRA investment?
Gold is an excellent investment for any person who wants to save money. It can be used to diversify your portfolio. But gold has more to it than meets the eyes.
It has been used throughout history as currency and it is still a very popular method of payment. It is sometimes called the “oldest currency in the world”.
But gold is mined from the earth, unlike paper currencies that governments create. It is very valuable, as it is rare and hard to create.
The price of gold fluctuates based on supply and demand. People tend to spend more when the economy is healthy, which means that fewer people are able to mine gold. As a result, the value of gold goes up.
On the other hand, people will save cash when the economy slows and not spend it. This increases the production of gold, which in turn drives down its value.
This is why it makes sense to invest in gold for individuals and companies. You will benefit from economic growth if you invest in gold.
Also, your investments will earn you interest which can help increase your wealth. You won't lose your money if gold prices drop.
What are the advantages of 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 for those who want to save money for college. Others are designed for investors looking for higher returns. For example, Roth IRAs allow individuals to contribute after age 59 1/2 and pay taxes on any earnings at retirement. The earnings earned after they withdraw the funds aren't subject to any tax. This account is a good option if you plan 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 you don't need to worry about taxes while you wait for your gains to be available. This makes gold IRA accounts excellent options for people who prefer to keep their money invested instead of spending it.
You can also enjoy automatic withdrawals, which is another benefit of owning your gold through an IRA. That means you won't have to think about making deposits every month. To avoid missing a payment, direct debits can be set up.
Finally, gold is one of the safest investment choices available today. Because it's not tied to any particular country, its value tends to remain steady. Even in economic turmoil, gold prices tends to remain relatively stable. This makes it a great investment option to protect your savings from inflation.
Can I hold physical gold in my IRA?
Gold is money and not just paper currency. People have used gold as a currency for thousands of centuries to preserve their wealth and keep it safe from inflation. Investors today use gold to diversify their portfolios because gold is more resilient to financial turmoil.
Today, Americans prefer precious metals like silver and gold to stocks and bonds. Even though owning gold is not a guarantee of making money, there are many reasons why you might want to add gold to your retirement savings portfolio.
Another reason is the fact that gold historically has performed better than other assets in times of financial panic. 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. Gold can be worth more than its investment in a company that defaults on its obligations.
Finally, gold is liquid. This means that you can sell gold anytime, regardless of whether or not another buyer is available. The liquidity of gold makes it a good investment. This allows you to profit from short-term fluctuations on the gold market.
Is it a good idea to open a Precious Metal IRA
Before opening an IRA, it is important to understand that precious metals aren't covered by insurance. There is no way to recover money that you have invested in precious metals. This includes all investments that are lost to theft, fire, flood, or other causes.
Protect yourself against this type of loss by investing in physical gold or silver coins. These items have been around thousands of years and are irreplaceable. These items are worth more today than they were when first produced.
If you decide to open an IRA account, choose a reputable company that offers competitive rates and products. Consider using a third-party custody company to keep your assets safe and allow you to access them at any time.
When you open an account, keep in mind that you won't receive any returns until your retirement. So, don't forget about the future!
Statistics
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
External Links
cftc.gov
irs.gov
investopedia.com
forbes.com
How To
The History of Gold as an Asset
Gold was a currency from ancient times until the early 20th century. It was widely accepted around the world and enjoyed its purity, divisibility and uniformity. Due to its value, it was also internationally traded. Different weights and measurements existed around the world, however, because there were not international standards to measure gold. One pound sterling, for example, was equivalent in England to 24 carats, and one livre tournois, in France, to 25 carats. A mark, on the other hand, was equivalent in Germany to 28 carats.
In the 1860s, the United States began to issue American coins made from 90% copper, 10% Zinc, and 0.942 Fine Gold. This led to a decrease of demand for foreign currencies which in turn caused their prices to rise. The price of gold dropped because the United States began to mint large quantities of gold coins. The U.S. government needed to find a solution to their debt because there was too much money in circulation. They decided to return some of the gold they had left to Europe.
Many European countries didn't trust the U.S. dollars and started to accept gold for payment. After World War I, however, many European countries started using paper money to replace gold. The price of gold rose significantly over the years. Even though gold's price fluctuates, it is still one of the most secure investments you could make.
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By: Jamie Redman
Title: Ethereum Price Analysis: Bearish and Bullish Signals in the Market
Sourced From: news.bitcoin.com/ethereum-technical-analysis-eth-succumbs-to-bearish-pressure-and-upper-resistance/
Published Date: Mon, 18 Dec 2023 14:45:35 +0000
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