Ethereum's Price Movement
Similar to bitcoin, the second leading cryptocurrency, Ethereum (ETH), experienced a 2% increase against the U.S. dollar on Friday. ETH's price fluctuated between $2,024 and $2,111 within a 24-hour period, indicating a volatile yet upward trend. Currently, Ethereum has a market capitalization of $250 billion and a 24-hour trading volume of $17.56 billion.
Ethereum's Indicators
As of December 1, 2023, Ethereum (ETH) displays a mix of indicators. The current price of ETH is $2,081 per unit. The relative strength index (RSI) sits at 58.4, suggesting a balanced market position. The Stochastic oscillator also indicates a similar neutrality with a reading of 78.2. However, the commodity channel index (CCI) shows a bearish outlook with a reading of 129.9, which is echoed by the Momentum indicator at 51.9.
On the other hand, Ethereum's moving average convergence/divergence (MACD) leans towards optimism with a level of 9.4. Looking at various time frames (10, 20, 30, 50, 100, and 200 days), both the exponential moving average (EMA) and simple moving average (SMA) point to bullish tendencies. The EMAs particularly surpass their SMA counterparts, indicating a strong bullish momentum in the Ethereum market at present.
Price Movement Analysis
Examining the 4-hour chart of ETH/USD, we observe a positive trajectory characterized by escalating highs and lows. This follows a rebound from a solid support point at $1,520. The daily chart also reflects this bullish pattern, showing a recovery from a significant slump to approximately $877, followed by a consistent uptrend. Both charts indicate a consolidation near the $2,100 mark, which signifies a crucial point for potential price directions in the future.
Market Outlook and Strategies
Considering Ethereum's current market stance, a cautious optimistic perspective seems appropriate. For those considering long positions, a breakout above the $2,150 resistance level, accompanied by a surge in trading volume, could confirm a favorable entry point. Alternatively, a pullback to established support levels may also present entry opportunities. To minimize risks, it is advisable to place a stop loss just below recent swing lows or established support levels. Additionally, capitalizing on profits at previous peaks or resistance zones could enhance returns.
Bullish View
Ethereum's market indicators, especially the promising alignment of EMAs over SMAs across different time frames, along with the consistent formation of higher highs and lows on the 4-hour and daily charts, strongly suggest a bullish trend. The consolidation around the $2,100 level, followed by a potential breakout above the $2,150 resistance, further supports this optimistic outlook.
Bearish View
Despite some bullish signals, it is important to consider the bearish indications presented by the commodity channel index (CCI) and the moderate stance of the Momentum indicator. These suggest underlying market uncertainties and the potential for downward movement. Additionally, the consolidation near the $2,100 mark may act as a strong resistance level that Ethereum struggles to surpass, potentially leading to a downturn.
What are your thoughts on Ethereum's market action on Friday morning? Feel free to share your opinions in the comments section below.
Frequently Asked Questions
Can the government take your gold?
Your gold is yours, so the government cannot confiscate it. You earned it through hard work. It is yours. This rule could be broken by exceptions. You could lose your gold if convicted of fraud against a federal government agency. Also, if you owe taxes to the IRS, you can lose your precious metals. You can keep your gold even if your taxes are not paid.
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. In fact, there are many ways to make money from gold and silver investments without spending much money.
You might think about buying physical coins such a bullion bar or round. Also, you could buy shares in companies producing precious metals. Another option is to make use of the IRA rollover programs offered by your retirement plan provider.
You will still reap the benefits of owning precious metals, regardless of which option you choose. Even though they aren't stocks, they still offer the possibility of long-term growth.
Their prices rise with time, which is a different to traditional investments. You'll probably make more money if your investment is sold down the line than traditional investments.
What are the fees for an IRA that holds gold?
The Individual Retirement Account (IRA), fee is $6 per monthly. This fee includes account maintenance fees as well as any investment costs related to your selected investments.
Diversifying your portfolio may require you to pay additional fees. These fees can vary depending on which type of IRA account you choose. Some companies offer free checking accounts, but charge monthly fees to open IRA accounts.
A majority of providers also charge annual administration fees. These fees are usually between 0% and 1%. The average rate for a year is.25%. These rates are usually waived if you use a broker such as TD Ameritrade.
Can I buy gold with 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 an existing retirement fund.
The IRS allows individuals contributing up to $5.500 each ($6,500 if married, filing jointly) into 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 that you want to invest, it is a good idea to buy physical bullion and not in futures. Futures contracts can be described as financial instruments that are determined by the gold price. They let you speculate on future price without having to own the metal. But, physical bullion is real bars of gold or silver that you can hold in one's hand.
How to Open a Precious Metal IRA?
First, decide if an Individual Retirement Account is right for you. To open the account, complete Form 8606. Then you must fill out Form 5204 to determine what type of IRA you are eligible for. This form should be filled within 60 calendar days of opening the account. After this, you are ready to start investing. You could also opt to make a contribution directly from your paycheck by 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. You must be at least 18 years of age and have earned income to qualify for a precious metals IRA. Your earnings cannot exceed $110,000 per year ($220,000 if married and filing jointly) for any single tax year. Contributions must be made regularly. These rules apply whether you're contributing through an employer or directly from your paychecks.
An IRA for precious metals allows you to invest in gold and silver as well as platinum, rhodium, and even platinum. You can only purchase bullion in physical form. This means you won’t be able to trade stocks and bonds.
You can also use your precious metallics IRA to invest in companies that deal with precious metals. This option may be offered by some IRA providers.
An IRA is a great way to invest in precious metals. However, there are two important drawbacks. First, they don't have the same liquidity as stocks or bonds. This makes them harder to sell when needed. They don't yield dividends like bonds and stocks. You'll lose your money over time, rather than making it.
Is buying gold a good way to save money for retirement?
Although it may not look appealing at first, buying gold for investment is worth considering when you consider the global average gold consumption per year.
Physical bullion is the most popular method of investing in gold. There are many ways to invest your gold. The best thing to do is research all options thoroughly and then make an informed decision based on what you want from your investments.
For example, purchasing shares of companies that extract gold or mining equipment might be a better option if you aren't looking for a safe place to store your wealth. If you need cash flow from an investment, purchasing gold stocks is a good choice.
You also can put your money into exchange-traded funds (ETFs), which essentially give you exposure to the price of gold by holding gold-related securities instead of actual gold. These ETFs usually include stocks of precious metals refiners or gold miners.
Can I hold physical gold in my IRA?
Not just paper money or coins, gold is money. People have been using gold for thousands of years to store their wealth and protect it from economic instability and inflation. Today, investors invest in gold as part a diversified portfolio. This is because gold tends do better in financial turmoil.
Today, many Americans invest in precious metals such as gold and silver rather than stocks and bonds. It is possible to make money by investing in gold. However, it doesn't guarantee that you'll make a lot of money.
One reason is that gold has historically performed better than other assets during periods of financial panic. Between August 2011 and early 2013 gold prices soared nearly 100 percent, while the S&P 500 plunged 21 percent. Gold was one asset that outperformed stocks in turbulent market conditions.
Another benefit to investing in gold? It has virtually zero counterparty exposure. If your stock portfolio goes down, you still own your shares. 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. This means you can easily sell your gold any time, unlike other investments. It makes sense to buy small quantities of gold, as it is more liquid than other investments. This allows you to take advantage of short-term fluctuations in the gold market.
Statistics
- 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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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
cftc.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement accounts
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's Not Exactly Legal – WSJ
How To
Gold IRAs are a growing trend
Investors seek diversification and protection against inflation by using gold IRAs.
The gold IRA allows owners to invest in physical gold bullion and bars. It is a tax-free investment that can be used to grow wealth and offers an alternative investment option to those who are concerned about stocks or bonds.
A gold IRA allows investors to manage their assets without worrying about market volatility. Investors can use the gold IRA for protection against inflation and potential problems.
Investors also benefit from physical gold's unique properties, such as durability and portability.
The gold IRA also offers many other benefits, such as the ability to quickly transfer the ownership of the gold to heirs, and the fact the IRS doesn't consider gold a currency.
Investors who seek financial stability and a safe haven are finding the gold IRA increasingly attractive.
—————————————————————————————————————————————————————————————–
By: Jamie Redman
Title: Ethereum Technical Analysis: ETH Gains Momentum but Faces Resistance at $2,100
Sourced From: news.bitcoin.com/ethereum-technical-analysis-eth-momentum-stops-short-after-hitting-2100-barrier/
Published Date: Fri, 01 Dec 2023 15:00:14 +0000
Leave a Reply