Ethereum Technical Analysis: ETH Slips 4%, Traders Eye Critical Support With Caution

Overview

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, experienced a downturn on Friday, dropping 4.7% against the U.S. dollar. Over the previous week, it has seen a decline of 6.6% in its value. The trading dynamics on November 17, 2023, showcased a complex blend of factors influencing ethereum's market behavior.

Market Analysis

Ethereum's market cap of $236 billion and significant trading volume ensured its stability amidst market fluctuations. The 24-hour trading spectrum reveals vigorous activity, with ether's price fluctuating between $1,942 and $2,061. The relative strength index (RSI) positioned at 55.4, suggests a balanced market atmosphere. Yet, the moving average convergence/divergence (MACD) reading at 75.4 points towards a bearish trend, highlighting the intricate nature of the market.

Moving Averages

The analysis of ethereum's moving averages projected an overwhelmingly positive trend. The exponential moving averages (EMAs) and simple moving averages (SMAs), across different timelines, predominantly indicate an upward trajectory, with values stretching from $1,720.2 to $1,982. This trend signifies a solid foundation of buying interest within the past week and hints at the potential for the upward trend to persist.

Support and Resistance

Ether's pricing patterns disclose key support and resistance thresholds. The $1,950 level has surfaced as a pivotal short-term support, laying the groundwork for possible long positions. In contrast, the $2,139 threshold stands as a notable resistance point, triggering a retracement in prices. For traders eyeing long positions, the $1,950 support level is advisable as a cautious entry point, particularly when paired with substantial trading volume.

On the flip side, for securing gains and minimizing risks associated with potential sales pressure, setting an initial exit target just beneath the $2,139 resistance level is prudent for long positions. Should there be a downward shift, breaching below the $1,950 support could open opportunities for short positions. Here, investors should contemplate entering slightly below this threshold, aiming for the previous low at $1,520, while paying close attention to surges in trading volume as a confirmatory sign.

Bull Verdict

Ethereum's current market indicators and trading patterns exhibit a bullish outlook. The sustained buying interest, as evidenced by the moving averages (MAs) favoring an uptrend, along with the solid support level at $1,950, suggest a foundation for further price appreciation. If the market maintains its momentum and volume, ether could potentially break past its resistance level ($2,139), paving the way for a continued upward trajectory.

Bear Verdict

Conversely, the bearish sentiment in ethereum's market cannot be overlooked. The bearish signal from the MACD and the resistance encountered at $2,139 indicate potential downward pressure. Should ethereum's price break below the key support level of $1,950, it may trigger a trend reversal, leading to further price declines. This scenario could be exacerbated by market volatility and selling pressure.

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Frequently Asked Questions

How to Open a Precious Metal IRA?

First, decide if an Individual Retirement Account is right for you. Open the account by filling out Form 8606. Next, fill out Form 5204. This will determine the type of IRA that you are eligible for. This form should be filled within 60 calendar days of opening the account. Once this has been completed, you can begin investing. You may also choose to contribute directly from your paycheck using payroll deduction.

For a Roth IRA you will need to complete Form 8903. Otherwise, the process will look identical to an existing IRA.

To be eligible to have a precious metals IRA you must meet certain criteria. The IRS requires that you are at least 18 years old and have earned an income. Your earnings cannot exceed $110,000 per year ($220,000 if married and filing jointly) for any single tax year. You must also contribute regularly. These rules apply whether you’re contributing through an employer or directly from your paychecks.

You can use a precious-metals IRA to purchase gold, silver and palladium. However, you can’t purchase physical bullion. This means you won’t be able to trade stocks and bonds.

Your precious metals IRA may also be used to invest in precious-metal companies. This option may be offered by some IRA providers.

However, investing in precious metals via an IRA has two serious drawbacks. First, they aren’t as liquid than stocks and bonds. It is therefore harder to sell them when required. Second, they don’t generate dividends like stocks and bonds. So, you’ll lose money over time rather than gain it.

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. You can also transfer funds from another retirement account if you already have one.

The IRS allows individuals up to $5.500 annually ($6,500 if you are married and filing jointly). This can be contributed to a traditional IRA. Individuals can contribute up $1,000 per annum ($2,000 if they are married and jointly) directly to a Roth IRA.

If you do decide to invest in gold, you’ll want to consider purchasing physical bullion rather than investing in futures contracts. Futures contracts, which are financial instruments based upon the price of gold, are financial instruments. These financial instruments allow you to speculate about future prices without actually owning the metal. But physical bullion refers to real gold and silver bars you can carry in your hand.

How does a gold IRA work?

Individuals who want to invest with precious metals may use the Gold Ira accounts, which are tax-free.

You can purchase physical gold bullion coins anytime. To invest in gold, you don’t need to wait for retirement.

You can keep gold in an IRA forever. Your gold holdings will not be subject to tax when you are gone.

Your heirs will inherit your gold, and not pay capital gains taxes. Your gold is not part of your estate and you don’t have to include it in the final estate report.

To open a IRA for gold, you must first create an individual retirement plan (IRA). Once you’ve completed this step, an IRA administrator will be appointed to your account. This company acts like a middleman between the IRS and you.

Your gold IRA custody will take care of the paperwork and send the forms to IRS. This includes filing annual reports.

Once you’ve set up your gold IRA, it’s possible to buy gold bullion. The minimum deposit required to purchase gold bullion coins is $1,000 However, you’ll receive a higher interest rate if you put in more.

Taxes will apply to gold that you take out of an IRA. If you take out the whole amount, you’ll be subject to income taxes as well as a 10 percent penalty.

However, if you only take out a small percentage, you may not have to pay taxes. There are exceptions. You’ll owe federal income tax and a 20% penalty if you take out more than 30% of your total IRA assets.

It is best to not take out more than 50% annually of your total IRA assets. You’ll be facing severe financial consequences if you do.

Can I hold a gold ETF in a Roth IRA?

While a 401k may not offer this option for you, it is worth considering other options, such an Individual Retirement Plan (IRA).

Traditional IRAs allow for contributions from both employees and employers. Another way to invest in publicly traded companies is through an Employee Stock Ownership Plan.

An ESOP can provide tax advantages, as employees are allowed to share in company stock and the profits generated by the business. The money you invest in the ESOP will be taxed at a lower rate than if it were directly held by the employee.

A Individual Retirement Annuity is also possible. An IRA allows for you to make regular income payments during your life. Contributions to IRAs can be made without tax.

What is the tax on gold in Roth IRAs?

An investment account’s tax is calculated based on the current value of the account, and not on what you paid originally. If you invest $1,000 into a mutual fund, stock, or other investment account, then any gains are subjected tax.

If you place the money in a traditional IRA, 401(k), or other retirement plan, there is no tax when you take it out. Only earnings from capital gains and dividends are subject to tax. These taxes do not apply to investments that have been held for more than one year.

These accounts are subject to different rules depending on where you live. In Maryland, for example, withdrawals must be made within 60 days of reaching the age of 59 1/2 in order to qualify. Massachusetts allows you up to April 1st. New York offers a waiting period of up to 70 1/2 years. To avoid penalties, you should plan ahead and take distributions as soon as possible.

Statistics

  • Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
  • 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)
  • If you take distributions before hitting 59.5, you’ll owe a 10% penalty on the amount withdrawn. (lendedu.com)
  • Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)

External Links

finance.yahoo.com

law.cornell.edu

forbes.com

wsj.com

How To

How to Keep Physical Gold in an IRA

The best way of investing in gold is to purchase shares from companies that produce gold. This method is not without risks. There’s no guarantee these companies will survive. There is always the chance of them losing their money due to fluctuations of the gold price.

The alternative is to buy physical gold. This means that you will need to open an account at a bank, bullion seller online, or purchase gold from a trusted seller. This option has many advantages, including the ease of access (you don’t have to deal with stock markets) and the ability of making purchases at low prices. It is also easier to check how much gold you have stored. A receipt will be sent to you indicating exactly how much you paid. This will allow you to see if there were any tax omissions. You have less risk of theft when investing in stocks.

However, there are some disadvantages too. Bank interest rates and investment funds won’t help you. It won’t allow you to diversify any of your holdings. Instead, you’ll be stuck with what’s been bought. Finally, the taxman might want to know where your gold has been placed!

If you’d like to learn more about buying gold in an IRA, visit the website of BullionVault.com today!

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By: Jamie Redman
Title: Ethereum Technical Analysis: ETH Slips 4%, Traders Eye Critical Support With Caution
Sourced From: news.bitcoin.com/ethereum-technical-analysis-eth-slips-4-traders-eye-critical-support-with-caution/
Published Date: Fri, 17 Nov 2023 13:15:38 +0000

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