Ethereum's Downturn and Market Behavior
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.
Ethereum's Market Stability and Trading Volume
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.
Ethereum's Moving Averages and Upward Trend
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 Thresholds
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.
Exit Target and Short Positions
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.
Bullish Outlook
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.
Bearish Sentiment
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
What does gold do as an investment?
Gold's price fluctuates depending on the supply and demand. Interest rates are also a factor.
Due to limited supplies, gold prices are subject to volatility. You must also store physical gold somewhere to avoid the risk of it becoming stale.
What are the benefits of a gold IRA
A gold IRA has many benefits. It's an investment vehicle that allows you to diversify your portfolio. You can control how much money is deposited into each account as well as when it's withdrawn.
You can also rollover funds from other retirement accounts to a gold IRA. This makes for an easy transition if you decide to retire early.
The best part about gold IRAs? You don't have to be an expert. They are readily available at most banks and brokerages. You don't have to worry about penalties or fees when withdrawing money.
There are, however, some drawbacks. Gold is historically volatile. It is important to understand why you are investing in gold. Are you looking for growth or safety? Are you trying to find safety or growth? Only when you are clear about the facts will you be able take an informed decision.
If you plan on keeping your gold IRA alive for a while, you may want to consider purchasing more than 1 ounce of pure gold. You won't need to buy more than one ounce of gold to cover all your needs. Depending on your plans for using your gold, you may need multiple ounces.
You don't have to buy a lot of gold if your goal is to sell it. You can even manage with one ounce. You won't be capable of buying anything else with these funds.
How much should I contribute to my Roth IRA account?
Roth IRAs let you save tax on retirement by allowing you to deposit your own money. The account cannot be withdrawn from until you are 59 1/2. However, if you do decide to take out some of your contributions before then, there are specific rules you must follow. First, you can't touch your principal (the initial amount that was deposited). This means that you can't take out more money than you originally contributed. If you are able to take out more that what you have initially contributed, you must pay taxes.
The second rule is that your earnings cannot be withheld without income tax. Withdrawing your earnings will result in you paying taxes. Let's assume that you contribute $5,000 each year to your Roth IRA. Let's further assume you earn $10,000 annually after contributing. The federal income tax on your earnings would amount to $3,500. So you would only have $6,500 left. Since you're limited to taking out only what you initially contributed, that's all you could take out.
You would still owe tax on $1,500 if you took out $4,000 of your earnings. You would also lose half of your earnings because they are subject to another 50% tax (half off 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. A traditional IRA allows you to deduct pre-tax contributions from your taxable income. Your traditional IRA allows you to withdraw your entire contribution plus any interest. There are no restrictions on the amount you can withdraw from a Traditional IRA.
A Roth IRA doesn't allow you to deduct your contributions. Once you are retired, however, you may withdraw all of your contributions plus accrued interest. There is no minimum withdrawal amount, unlike traditional IRAs. You don't have to wait until you turn 70 1/2 years old before withdrawing your contribution.
How to open a Precious Metal IRA
The first step is to decide if you want an Individual Retirement Account (IRA). Open the account by filling out Form 8606. You will then need to complete Form 5204 in order to determine which type IRA you are eligible. This form should not be completed more than 60 days after the account is opened. Once this is done, you can start investing. You can also choose to pay your salary directly by making a payroll deduction.
Complete Form 8903 if your Roth IRA option is chosen. The process for an ordinary IRA will not be affected.
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 to contributions made directly or through employer sponsorship.
An IRA for precious metals allows you to invest in gold and silver as well as platinum, rhodium, and even platinum. However, you won't be able 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. Some IRA providers offer this option.
There are two main drawbacks to investing through an IRA in precious metallics. First, they are not as liquid or as easy to sell as stocks and bonds. It is therefore harder to sell them when required. They also don't pay dividends, like stocks and bonds. Therefore, you will lose money over time and not gain it.
How Do You Make a Withdrawal from a Precious Metal IRA?
First decide if your IRA account allows you to withdraw funds. Make sure you have enough cash in your account to cover any fees, penalties, or charges that may be associated with withdrawing money from an IRA.
A taxable brokerage account is a better option than an IRA if you are prepared to pay a penalty for early withdrawals. If you choose this option, you'll also need to consider taxes owed on the amount withdrawn.
Next, figure out how much money will be taken out of your IRA. This calculation will depend on many factors including your age at the time of withdrawal, how long the account has been in your possession, and whether you plan to continue contributing towards your retirement plan.
Once you have determined the percentage of your total savings that you would like to convert to cash, you can then decide which type of IRA to use. Traditional IRAs let you withdraw money tax-free after you turn 59 1/2, while Roth IRAs require you to pay income taxes upfront but allow you access the earnings later without paying any additional taxes.
Finally, you'll need to open a brokerage account once these calculations are completed. Most brokers offer free signup bonuses and other promotions to entice people to open accounts. It is better to open an account with a debit than a creditcard in order to avoid any unnecessary fees.
When you finally get around to making withdrawals from your precious metal IRA, you'll need a safe place where you can store your coins. Some storage facilities will accept bullion bars, others require you to buy individual coins. Before choosing one, consider the pros and disadvantages of each.
Bullion bars are easier to store than individual coins. But, each coin must be counted separately. You can track their value by keeping individual coins.
Some people prefer to keep coins safe in a vault. Others prefer to store their coins in a vault. Whichever method you choose, make sure you store your bullion safely so you can enjoy its benefits for years to come.
Should You Buy or Sell Gold?
In times past, gold was considered a safe haven for investors in times of economic trouble. Many people are shifting away from traditional investments like bonds or stocks to instead look toward precious metals such gold.
The trend for gold prices has been upward in recent years but they still remain low relative to other commodities like silver and oil.
Some experts think that this could change in the near future. Experts predict that gold prices will rise sharply in the wake of another global financial collapse.
They also mention that gold is becoming more popular due to its perceived worth and potential return.
These are some things you should consider when considering gold investing.
- Before you start saving money for retirement, think about whether you really need it. You can save money for retirement even if you don't invest in gold. However, when you retire at age 65, gold can provide additional protection.
- Second, make sure you understand what you're getting yourself into before you start buying gold.There are several different types of gold IRA accounts available. Each type offers varying levels and levels of security.
- Don't forget that gold does not offer the same safety level as a bank accounts. It is possible to lose your gold coins.
If you are thinking of buying gold, do your research. If you already have gold, make sure you protect it.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- 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)
- 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)
- 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)
External Links
cftc.gov
bbb.org
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
finance.yahoo.com
How To
How to hold 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. You'll need to open a bank account, buy gold online from a trusted seller, or open an online bullion trading account. This option offers the advantages of being able to purchase gold at low prices and easy access (you don’t need to deal directly with stock exchanges). It's also easy to see how many gold you have. You will receive a receipt detailing exactly what you paid. You're also less susceptible to theft than investing with stocks.
There are also some drawbacks. Bank interest rates and investment funds won't help you. Additionally, you won’t be able diversify your holdings. You will remain with the same items you bought. Finally, tax man may want to ask where you put your gold.
Visit BullionVault.com to find out more about gold buying in an IRA.
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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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