Ethereum's Market Position on Monday
Similar to bitcoin's price, the second leading digital currency in terms of market cap, ethereum, is down on Monday, losing 3% against the U.S. dollar. Oscillating within a 24-hour range of $2,017 to $2,088, ethereum maintains a market capitalization of $243 billion. Current technical indicators offer a nuanced perspective on ethereum's market position on Monday.
Ethereum's Price and Technical Indicators
Ethereum's price, recorded at $2,019, indicates a downward phase amidst the volatile crypto market. Despite this, oscillators present a predominantly neutral stance. The relative strength index (RSI) stands at 55.8, while the Stochastic and commodity channel index (CCI) are at 66.5 and 23.8, respectively. These figures suggest a balanced market condition, with some slight bearish signals.
Ethereum's Moving Averages
The story takes a nuanced turn when analyzing ethereum's moving averages. The exponential moving average (EMA) and simple moving average (SMA) at the 10-day mark indicate negative action at $2,037 and $2,031, respectively. However, longer-term EMAs and SMAs, particularly from the 20-day mark onwards, signal positive sentiment, illustrating a potential ether rise in the long run.
Short-Term Downtrend in the 1-Hour Chart
In the 1-hour chart analysis, ethereum exhibits a short-term downtrend, as indicated by consecutive red candles. Noteworthy spikes in selling volume are observed, yet buyer participation appears tepid. The chart lacks clear reversal patterns, making it difficult to pinpoint high-confidence entry points. Traders are advised to consider short positions with caution, given the oversold conditions in the short term.
Reversal to Sustained Downward Momentum in the 4-Hour Chart
The 4-hour chart tells a different story, marking a reversal from a previous uptrend to a sustained downward momentum. Increased volume on downward candles points to significant selling pressure. Ethereum found previous support near the $1,907 range and faced resistance at the peak around $2,136. The absence of definitive continuation or reversal patterns suggests a cautious approach for traders looking for long-term positions.
Bullish and Bearish Outlook
Bull Verdict: Ethereum's technical indicators, while presenting a mixed view, lean towards a bullish future. The longer-term moving averages, especially beyond the 20-day mark, signal strong buy actions, suggesting an underlying confidence in ethereum's value growth.
Bear Verdict: Despite occasional bullish signals, ethereum's technical analysis predominantly suggests a bearish outlook. The short-term moving averages and the recent downtrend in the 1-hour chart underscore a pressing sell sentiment.
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What do you think about ether's market action on Monday morning? Share your thoughts and opinions about this subject in the comments section below.
Frequently Asked Questions
What Does Gold Do as an Investment Option?
The supply and demand for gold affect the price of gold. It is also affected negatively by interest rates.
Gold prices are volatile due to their limited supply. You must also store physical gold somewhere to avoid the risk of it becoming stale.
Can I buy gold with my self-directed IRA?
Your self-directed IRA can be used to purchase gold, but first you need to open an account with a brokerage firm such as TD Ameritrade. You can also transfer funds from an existing retirement fund.
The IRS allows individuals to contribute as high as $5,500 ($6,500 if they are married and 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.
If you do decide that you want to invest, it is a good idea to buy physical bullion and not in futures. 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 can you withdraw from an IRA of Precious Metals?
First, you must decide if you wish to withdraw money from your IRA account. You should also ensure that you have enough money to cover any fees and penalties associated with withdrawing funds.
If you are willing to pay a penalty for early withdrawal, you should consider opening a taxable brokerage account instead of an IRA. If you decide to go with this option, you will need to take into account the taxes due on the amount you withdraw.
Next, you'll need to figure out how much money you will take out of your IRA. This calculation depends on several factors, including the age when you withdraw the money, how long you've owned the account, and whether you intend to continue contributing to your retirement plan.
Once you know how much of your total savings to convert to cash, it's time to choose the type of IRA that you want. Traditional IRAs permit you to withdraw your funds tax-free once you turn 59 1/2. Roth IRAs have income taxes upfront, but you can access the earnings later on without paying 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. You can save money by opening an account with a debit card instead of a credit card to avoid paying unnecessary fees.
When it's time to make withdrawals from your precious-metal IRA, you'll need a place to keep your coins safe. Some storage facilities will take bullion bars while others require you only to purchase individual coins. Before choosing one, consider the pros and disadvantages of each.
For example, storing bullion bars requires less space because you aren't dealing with individual coins. But, each coin must be counted separately. However, individual coins can be stored to make it easy to track their value.
Some prefer to keep their money in a vault. Others prefer to place them in safe deposit boxes. You can still enjoy the benefits of bullion for many years, regardless of which method you choose.
What Is a Precious Metal IRA?
A precious metal IRA allows you to diversify your retirement savings into gold, silver, platinum, palladium, rhodium, iridium, osmium, and other rare metals. These are “precious metals” because they are hard to find, and therefore very valuable. They make excellent investments for your money and help you protect your future from inflation and economic instability.
Precious metals often refer to themselves as “bullion.” Bullion refers to the actual physical metal itself.
Bullion can be bought via various channels, such as online retailers, large coin dealers and grocery stores.
A precious metal IRA lets you invest in bullion direct, instead of purchasing stock. This means you'll receive dividends every year.
Precious Metal IRAs don’t require paperwork nor have annual fees. Instead, you pay only a small percentage tax on your gains. Additionally, you have access to your funds at no cost whenever you need them.
How does a gold IRA account work?
People who wish to invest in precious metals can use Gold Ira accounts as a tax-free investment vehicle.
Physical gold bullion coin can be purchased at any time. You don’t have to wait to begin investing in gold.
An IRA lets you keep your gold for life. Your gold holdings won't be subject to taxes when you pass away.
Your gold will be passed on to your heirs, without you having to pay capital gains taxes. Because your gold doesn't belong to the estate, it's not necessary to include it on your final estate plan.
To open a Gold IRA, you'll need to first set up an Individual Retirement Account (IRA). After you do this, you will be granted an IRA custodian. 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 reporting.
Once your gold IRA is established, you can purchase gold bullion coins. Minimum deposit required is $1,000 The minimum deposit is $1,000. However, you will receive a higher percentage of interest if your deposit is greater.
Taxes will be charged on gold you have withdrawn from an 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. There are some exceptions. For instance, if you take out 30% or more from your total IRA assets, federal income taxes will apply plus a 20 percent penalty.
It's best not to take out more 50% of your total IRA investments each year. If you do, you could face severe financial consequences.
Statistics
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
External Links
forbes.com
bbb.org
cftc.gov
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
How To
Gold Roth IRA guidelines
It is best to start saving early for retirement. You should start as soon as you are eligible (usually at age 50) and continue saving throughout your career. It is important to invest enough money each and every year to ensure you get adequate growth.
Also, you want to take advantage tax-free options such as a traditional 401k, SEP IRA or SIMPLE IRA. These savings vehicles permit you to make contributions, but not pay any tax until your earnings are withdrawn. This makes them a great choice for people who don’t have access employer matching funds.
Save regularly and continue to save over time. You will lose any potential tax advantages if you don't contribute enough.
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By: Jamie Redman
Title: Ethereum Technical Analysis: ETH Hangs Above $2K Range Amid 3% Drop
Sourced From: news.bitcoin.com/ethereum-technical-analysis-eth-hangs-above-2k-range-amid-3-drop/
Published Date: Mon, 27 Nov 2023 13:53:35 +0000
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