Ethereum's current trading value of $2,265 showcases its volatility, with prices fluctuating within a daily range of $2,170 to $2,310. The cryptocurrency holds a market capitalization of $272 billion and boasts a robust 24-hour trading volume of $19.24 billion. Similar to bitcoin, ether's volatility is amplified by the anticipation surrounding the potential approval of a spot bitcoin exchange-traded fund (ETF).
Mixed Signals from Ethereum's Market Oscillators
Ethereum's market oscillators present a mixed picture, with the majority indicating a neutral market sentiment. Oscillators such as the relative strength index (RSI) and Stochastic hover around neutral territory, suggesting a balanced and undecided market. However, the commodity channel index (CCI) has dipped into the negative, and the moving average convergence divergence (MACD) has signaled a sell-off, contradicting the bullish hint from the momentum indicator. This confluence of mixed signals indicates that ether's market is at a crossroads, awaiting a clear trend or trigger.
Short-term Bearish Trend, Potential for Medium to Long-term Recovery
The short-term moving averages, particularly the 10 and 20-day averages, indicate a bearish trend, reflecting recent price drops. However, a shift in sentiment is observed in the longer-term averages, from the 30-day mark onwards, where bulls dominate. This divergence suggests short-term bearishness but hints at the potential for medium to long-term recovery or growth.
Volatile Daily Chart, Strategic Entry and Exit Points
Examining ether's daily chart reveals a volatile narrative characterized by significant price swings. A recent large drop followed by a modest recovery signifies a fierce sell-off. The absence of a definitive trend in the daily chart indicates a market struggling to find direction, offering strategic entry and exit points for astute traders.
More Nuanced Picture on the 4-hour Chart
Zooming into the 4-hour chart provides a more nuanced view of price movement. Recent bullish rises suggest a potential trend reversal. The smaller ups and downs indicate reduced volatility and a consensus among traders at these levels, highlighting critical entry and exit points for short-term plays.
Positive Uptrend on the 1-hour Chart
The 1-hour chart of Ethereum sharpens the focus and reveals a defined uptrend characterized by a bullish upswing and increasing volume. This positive sign indicates continued upward momentum. Traders are advised to look for entry opportunities at pullbacks to support levels, ensuring the pattern of higher highs continues.
Bull Verdict: Resilience and Potential Upward Trajectory
Despite short-term turbulence and neutral signals from oscillators, ether has shown resilience in the face of market volatility. Optimistic longer-term moving averages and the budding uptrend on the 1-hour chart suggest a potential upward trajectory. Traders may view this as an opportunity to capitalize on dips, while keeping an eye out for emerging bullish patterns that signal strengthening momentum for ethereum.
Bear Verdict: Challenging Landscape and Potential Downside Risks
Ethereum's price analysis reveals a challenging landscape, marked by immediate bearish signals from short-term moving averages and a significant sell-off indicated in the daily chart. The prevalence of neutral oscillator readings suggests a lack of strong buying momentum, potentially leading to further price consolidation or decline. Traders should exercise caution, considering the possibility of continued bearish trends and preparing for potential downside risks as the market seeks a new equilibrium.
What are your thoughts on ether's market action on Monday morning? Share your opinions and insights in the comments section below.
Frequently Asked Questions
Can I buy or sell gold from my self-directed IRA
While you can purchase gold from your self-directed IRA (or any other brokerage firm), you must first open a brokerage account such as TD Ameritrade. If you have an existing retirement account, you can transfer funds to another one.
The IRS allows individuals to contribute up to $5,500 annually ($6,500 if married and filing jointly) to a traditional IRA. Individuals can contribute as much as $1,000 per year ($2,000 if married filing jointly) to a Roth IRA.
You should consider buying physical gold bullion if you decide to invest in it. Futures contracts can be described as financial instruments that are determined by the gold price. These contracts allow you to speculate on future gold prices without actually owning it. But physical bullion refers to real gold and silver bars you can carry in your hand.
Is it a good retirement strategy to buy gold?
Buying gold as an investment may not seem very appealing at first glance, but when you consider how much people spend on average on gold per year worldwide, it becomes worth considering.
The best form of investing is physical bullion, which is the most widely used. There are many ways to invest your gold. It's best to thoroughly research all options before you make a decision.
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 require cash flow, gold stocks can work well.
You can also put your money in exchange traded funds (ETFs). These funds allow you to be exposed to the price and value of gold by holding gold related securities. These ETFs often include stocks of gold miners, precious metals refiners, and commodity trading companies.
How much money should my Roth IRA be funded?
Roth IRAs are retirement accounts where you deposit your own money tax-free. These accounts are not allowed to be withdrawn before the age of 59 1/2. If you decide to withdraw some of your contributions, you will need to follow certain rules. First, you can't touch your principal (the initial amount that was deposited). This means that no matter how much you contribute, you can never take out more than what was initially contributed to this account. If you are able to take out more that what you have initially contributed, you must pay taxes.
The second rule is that you cannot withdraw your earnings without paying income taxes. Withdrawing your earnings will result in you paying taxes. Let's take, for example, $5,000 in annual Roth IRA contributions. Let's also say that you earn $10,000 per annum after contributing. This would mean that you would have to pay $3,500 in federal income tax. This leaves you with $6,500 remaining. You can only take out what you originally contributed.
You would still owe tax on $1,500 if you took out $4,000 of your earnings. You'd also lose half the earnings that you took out, as they would be subject to a second 50% tax (half of 40%). So, even though you ended up with $7,000 in your Roth IRA, you only got back $4,000.
There are two types: Roth IRAs that are traditional and Roth. Traditional IRAs allow for pre-tax deductions from your taxable earnings. To withdraw your retirement contribution balance plus interest, your traditional IRA is available to you. You can withdraw as much as you want from a traditional IRA.
Roth IRAs don't allow you deduct contributions. But once you've retired, you can withdraw the entire contribution amount plus any accrued interest. Unlike a traditional IRA, there is no minimum withdrawal requirement. It doesn't matter if you are 70 1/2 or older before you withdraw your contribution.
How much gold should your portfolio contain?
The amount you make will depend on the amount of capital you have. A small investment of $5k-10k would be a great option if you are looking to start small. As you grow, you can move into an office and rent out desks. This will allow you to pay rent monthly, and not worry about it all at once. It's only one monthly payment.
It is also important to decide what kind of business you want to run. In my case, I run a website-creation company. Our clients pay us between $1000-2000/month and depending on their order. You should also consider the expected income from each client when you do this type of thing.
If you are doing freelance work, you probably won't have a monthly salary like I do because the project pays freelancers. You might get paid only once every six months.
Decide what kind of income do you want before you calculate how much gold is needed.
I recommend starting with $1k-$2k in gold and working my way up.
What is a gold IRA account?
Gold Ira accounts are tax-free investment vehicles for people who want to invest in precious metals.
You can purchase physical gold bullion coins anytime. You don't have to wait until retirement to start investing in gold.
Owning gold as an IRA has the advantage of allowing you to keep it forever. When you die, your gold assets won't be subjected to taxes.
Your heirs can inherit your gold and avoid capital gains taxes. Because your gold doesn't belong to the estate, it's not necessary to include it on your final estate plan.
You'll first have to set up an individual retirement account (IRA) to open a gold IRA. Once you've done that, you'll receive an IRA custody. This company acts as an intermediary between you and IRS.
Your gold IRA custodian is responsible for handling all paperwork and submitting the required forms to the IRS. This includes filing annual reports.
Once you've established your gold IRA, you'll be able to purchase gold bullion coins. Minimum deposit is $1,000 However, you'll receive a higher interest rate if you put in more.
You will pay taxes when you withdraw your gold from your IRA. If you are withdrawing your entire balance, you will owe income tax plus a 10% 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.
Avoid taking out more that 50% of your total IRA assets each year. A violation of this rule can lead to severe financial consequences.
Can I hold physical gold in my IRA?
Gold is money. 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.
Many Americans today prefer to invest in precious metals, such as silver and gold, over stocks and bonds. While owning gold doesn't guarantee you'll make money investing in gold, there are several reasons why it may make sense to consider adding gold to your retirement portfolio.
One reason is that gold historically performs better than other assets during financial panics. 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 those turbulent market conditions, gold was among the few assets that outperformed stocks.
Gold is one of the few assets that has virtually no counterparty risks. You still have your shares even if your stock portfolio falls. However, if you have gold, your value will rise even if the company that you invested in defaults on its loans.
Finally, gold offers liquidity. You can sell your gold at any time without worrying about finding a buyer, which is a major advantage over other investments. Because gold is so liquid compared to other investments, buying it in small amounts makes sense. This allows for you to benefit from the short-term fluctuations of the gold market.
Statistics
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- 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)
- 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)
- 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
irs.gov
finance.yahoo.com
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- Want to Keep Gold in Your IRA at Home? It's not exactly legal – WSJ
investopedia.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. However, there are risks associated with this strategy. It isn't always possible for these companies to survive. Even if the company survives, they still face the risk of losing their investment due to fluctuations in gold's price.
The alternative is to buy physical gold. This requires you to either open up your account at a bank or an online bullion dealer or simply purchase gold from a reputable seller. The advantages of this option include the ease of access (you don't need to deal with stock exchanges) and the ability to make purchases when prices are low. It's easier to track how much gold is in your possession. So you can see exactly what you have paid and if you missed any taxes, you will get a receipt. You are also less likely to be robbed than investing in stocks.
However, there are some disadvantages too. You won't be able to benefit from investment funds or interest rates offered by banks. You can't diversify your holdings, and you are stuck with the items you have bought. Finally, the taxman might want to know where your gold has been placed!
Visit BullionVault.com to find out more about gold buying in an IRA.
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By: Jamie Redman
Title: Ethereum Technical Analysis: Ether's Volatility Reflects Bitcoin's Amid Growing ETF Anticipation
Sourced From: news.bitcoin.com/ethereum-technical-analysis-ether-echoes-bitcoins-volatility-amid-growing-etf-anticipation/
Published Date: Mon, 08 Jan 2024 14:23:04 +0000
