Introduction
As of December 18, 2023, the ethereum market is experiencing a complex interplay of bearish and bullish signals. Technical indicators, including the 4-hour and daily charts, oscillators, and moving averages, reveal a critical juncture in ethereum's market trajectory.
4-Hour Chart Analysis
The 4-hour chart analysis for ethereum (ETH) shows a predominantly bearish picture. It is characterized by a distinct downtrend, with lower highs and lower lows indicating bearish momentum. Although there has been a recent uptrend suggesting a potential short-term reversal, the overall downward trend suggests that this may be a temporary pause. Investors considering short positions should keep an eye on the key resistance level at $2,235 per ETH.
Daily Chart Analysis
The daily chart provides a broader historical context of ethereum's price movements. Previously, ethereum experienced an uptrend, reaching a peak around $2,407, before transitioning into the current downtrend. The break below the crucial support level of $2,100 confirms a strong bearish sentiment. Investors seeking potential entry points for both short and long-term positions should consider this longer-term perspective.
Oscillators
Oscillators, which are used to gauge market momentum and potential reversals, present a mixed outlook. The relative strength index (RSI) at 47.6, along with the Stochastic, commodity channel index (CCI), average directional index (ADI), and awesome oscillator, are all in neutral to bearish territory. This suggests a market in flux, with no clear directional bias, making investment decision-making more complex.
Moving Averages
Moving averages (MAs) help identify trends and potential reversals over various timeframes. In the case of ethereum, there is a dichotomy in moving averages. Short-term MAs, such as the 10-day and 20-day exponential and simple moving averages (EMAs and SMAs), indicate negative sentiment and immediate bearish pressure. On the other hand, longer-term MAs, including the 50-day, 100-day, and 200-day EMAs and SMAs, suggest a positive outlook and a potential shift in the longer-term trend.
Market Balance
The confluence of these indicators suggests that ethereum's market is delicately balanced. The bearish signals from the 4-hour chart and short-term moving averages are counterbalanced by the bullish outlook in the longer-term moving averages. This calls for a cautious approach, particularly for those considering long positions, as the market's bearish tilt remains a significant factor.
Bull Verdict
Despite the current bearish indicators, the bull verdict for ethereum on December 18, 2023, relies on the strength of the longer-term moving averages and the historical resilience of the asset. The neutral positioning of oscillators like the RSI and ADI suggests the potential for a trend reversal if the market can sustain above key support levels and breach the resistance near.
Bear Verdict
The bearish verdict for ethereum, based on the same data from December 18, 2023, is primarily driven by the persisting downward trend on the 4-hour chart and the bearish indications from short-term moving averages. The failure to break above the key resistance level of $2,235 and the trend of lower highs and lower lows indicate continued bearish dominance. Unless there is a significant shift in market sentiment or a breakout above crucial resistance levels, the bearish trend is likely to prevail.
What are your thoughts on ethereum's market action on Monday morning? Share your opinions and insights in the comments section below.
Frequently Asked Questions
Is it possible to hold a gold ETF within a Roth IRA
You may not have this option with a 401(k), however, you might want to consider other options, like an Individual retirement account (IRA).
Traditional IRAs allow contributions from both the employer and employee. A Employee Stock Ownership Plan, or ESOP, is another way to invest publicly traded companies.
An ESOP can provide tax advantages, as employees are allowed to share in company stock and the profits generated by the business. The tax rate on money that is invested in an ESOP is lower than if it was held in the employees' hands.
Also available is an Individual Retirement Annuity. An IRA lets you make regular, income-generating payments to yourself over your life. Contributions to IRAs do not have to be taxable
How to Open a Precious Metal IRA?
The first step in opening an Individual Retirement Account, (IRA), is to decide if it's something you want. You must complete Form 8606 to open an account. To determine which type of IRA you qualify for, you will need to fill out Form 5204. You must complete this form within 60 days of opening your account. Once this has been completed, you can begin investing. You could also opt to make a contribution directly from your paycheck by using payroll deduction.
You must complete Form 8903 if you choose a Roth IRA. Otherwise, the process is identical to an ordinary IRA.
You'll need to meet specific requirements to qualify for a precious metals IRA. You must be at least 18 years of age and have earned income to qualify for a precious metals IRA. You cannot earn more than $110,000 annually ($220,000 if married filing jointly) in any one tax year. You must also contribute regularly. These rules apply whether you're contributing through an employer or directly from your paychecks.
You can invest in precious metals IRAs to buy gold, palladium and platinum. However, you can't purchase physical bullion. This means you won't be allowed to trade shares of stock or bonds.
You can also use your precious metals IRA to invest directly in companies that deal in precious metals. Some IRA providers offer this option.
There are two main drawbacks to investing through an IRA in precious metallics. First, they don't have the same liquidity as stocks or bonds. They are therefore more difficult to sell when necessary. They also don't pay dividends, like stocks and bonds. Also, they don't generate dividends like stocks and bonds. You will eventually lose money rather than make it.
What are the pros & cons of a Gold IRA?
An Individual Retirement Account (IRA), unlike regular savings accounts, doesn't require you to pay tax on interest earned. An IRA is a great option for those who want to save money, but don't want tax on any interest earned. But, this type of investment comes with its own set of disadvantages.
To give an example, if your IRA is withdrawn too often, you can lose all your accumulated funds. Also, the IRS may not allow you to make withdrawals from your IRA until you're 59 1/2 years old. You will likely have to pay a penalty fee if you withdraw funds from an IRA.
Another disadvantage is that you must pay fees to manage your IRA. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management fees ranging from $10 to $50.
Insurance is necessary if you wish to keep your money safe from the banks. Insurance companies will usually require that you have at least $500,000. Insurance that covers losses upto $500,000.
If you decide to open a gold IRA, it is important to know how much you can use. Some providers limit the amount of gold that you are allowed to own. Others allow you the freedom to choose your own weight.
You will also have to decide whether to purchase futures or physical gold. Futures contracts for gold are less expensive than physical gold. Futures contracts offer flexibility for buying gold. They allow you to set up a contract with a specific expiration date.
Also, you will need to decide on the type of insurance coverage you would like. The standard policy does NOT include theft protection and loss due to fire or flood. It does include coverage for damage due to natural disasters. You might consider purchasing additional coverage if your area is at high risk.
You should also consider the cost of storage for your gold. Storage costs are not covered by insurance. Banks charge between $25 and $40 per month for safekeeping.
If you decide to open a gold IRA, you must first contact a qualified custodian. A custodian helps you keep track of your investments, and ensures compliance with federal regulations. Custodians don't have the right to sell assets. Instead, they must retain them for as long and as you require.
Once you have chosen the right type of IRA to suit your needs, it is time to fill out paperwork defining your goals. Information about your investments such as stocks and bonds, mutual fund, or real property should be included in your plan. Also, you should specify how much each month you plan to invest.
You will need to fill out the forms and send them to your chosen provider together with a check for small deposits. After reviewing your application, the company will send you a confirmation mail.
Consider consulting a financial advisor when opening a golden IRA. A financial planner can help you decide the type of IRA that is right for your needs. They can also help reduce your costs by suggesting cheaper options for purchasing insurance.
Should You Buy or Sell Gold?
In times past, gold was considered a safe haven for investors in times of economic trouble. However, today many people are turning away from traditional investments such as stocks and bonds and instead looking toward precious metals such as gold.
Gold prices have been on an upward trend over recent years, but they remain relatively low compared to other commodities such as oil and silver.
Experts believe this could change soon. Experts believe that gold prices could skyrocket in the face of another global financial crisis.
They also mention that gold is becoming more popular due to its perceived worth and potential return.
If you are considering investing in gold, here are some things that you need to keep in mind.
- The first thing to do is assess whether you actually need the money you're putting aside for retirement. It's possible to save for retirement without putting your savings into gold. However, when you retire at age 65, gold can provide additional protection.
- Second, you need to be clear about what you are buying before you decide to buy gold. Each account offers different levels of security and flexibility.
- Last but not least, gold doesn't provide the same level security as a savings account. Your gold coins may be lost and you might never get them back.
So, if you're thinking about buying gold, make sure you do your research first. Protect your gold if you already have it.
Is gold buying a good retirement option?
While buying gold as an investment may seem unattractive at first glance it becomes worth the effort when you consider how much gold is consumed worldwide each year.
Physical bullion bars are the most popular way to invest in gold. But there are many other options for investing in gold. Research all options carefully and make an informed decision about what you desire 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 to finance your investment, then gold stocks could be a good option.
You can also invest your money in exchange-traded fund (ETFs), which give you exposure to the gold price by holding securities related to gold. These ETFs can include stocks of precious metals refiners and gold miners.
How much money should my Roth IRA be funded?
Roth IRAs let you save tax on retirement by allowing you to deposit your own money. You can't withdraw money from these accounts before you reach the age of 59 1/2. However, if your goal is to withdraw funds before that time, there are certain rules you must observe. First, you cannot touch your principal (the original amount 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 says that you cannot withdraw your earnings without paying income tax. Also, taxes will be due on any earnings you take. Let's suppose that you contribute $5,000 annually to your Roth IRA. Let's also assume that you make $10,000 per year from your Roth IRA contributions. This would mean that you would have to pay $3,500 in federal income tax. The remaining $6,500 is yours. Because you can only withdraw what you have initially contributed, this is all you can take out.
The $4,000 you take out of your earnings would be subject to taxes. You'd still owe $1,500 in taxes. 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 of Roth IRAs: Traditional and Roth. A traditional IRA allows you to deduct pre-tax contributions from your taxable income. When you retire, you can use your traditional IRA to withdraw your contribution balance plus interest. A traditional IRA can be withdrawn up to the maximum amount allowed.
Roth IRAs are not allowed to allow you deductions for contributions. You can withdraw your entire contribution, plus accrued interests, after you retire. 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.
What are the benefits to having a gold IRA
The best way to invest money for retirement is by putting it into an Individual Retirement Account (IRA). It will be tax-deferred up until the time you withdraw it. You control how much you take each year. And there are many different types of IRAs. Some are better suited to college savings. Others are made for investors seeking higher returns. Roth IRAs permit individuals to contribute after the age 59 1/2. Any earnings earned at retirement are subject to tax. But once they start withdrawing funds, those earnings aren't taxed again. This account may be worth considering if you are looking to retire earlier.
An IRA with a gold status is like any other IRA because you can put money into different asset classes. Unlike a regular IRA, you don't have to worry about paying taxes on your gains while you wait to access them. People who prefer to save their money and invest it instead of spending it are well-suited for gold IRAs.
Another benefit of owning gold through an IRA is that you get to enjoy the convenience of automatic withdrawals. You won't have the hassle of making deposits each month. You could also set up direct debits to never miss a payment.
Finally, gold is one the most secure investment options available. Because it isn’t tied to any specific country, gold’s value tends to stay stable. Even in times of economic turmoil, gold prices tend not to fluctuate. Therefore, gold is often considered a good investment to protect your savings against inflation.
Statistics
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
External Links
cftc.gov
finance.yahoo.com
bbb.org
irs.gov
How To
Guidelines for Gold Roth IRA
You should start investing early to ensure you have enough money for retirement. It is best to start saving for retirement as soon you can (typically at age 50). It's vital to contribute enough money each year to ensure adequate growth on an ongoing basis.
You may also wish to take advantage of tax-free investments such as a SIMPLE IRA, SEP IRA, and traditional 401(k). These savings vehicles let you make contributions and not pay taxes until the 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 may not be eligible for any tax benefits if your contribution is less than the maximum allowed.
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By: Jamie Redman
Title: Ethereum Market Analysis: Bearish and Bullish Signals
Sourced From: news.bitcoin.com/ethereum-technical-analysis-eth-succumbs-to-bearish-pressure-and-upper-resistance/
Published Date: Mon, 18 Dec 2023 14:45:35 +0000
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