Ethereum's Market Behavior and Recent Decline
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.
Market Cap 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.
Moving Averages and Upward Trajectory
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 Targets 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.
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.
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
Is gold a good investment IRA?
Gold is an excellent investment for any person who wants to save money. It is also an excellent way to diversify you portfolio. But gold is not all that it seems.
It has been used throughout the history of currency and remains a popular payment method. It is often called “the oldest currency in the world.”
Gold is not created by governments, but it is extracted from the earth. It is very valuable, as it is rare and hard to create.
The supply and demand factors determine how much gold is worth. When the economy is strong, people tend to spend more money, which means fewer people mine gold. As a result, the value of gold goes up.
On the other hand, people will save cash when the economy slows and not spend it. This leads to more gold being produced which decreases its value.
This is why both individuals as well as businesses can benefit from investing in gold. If you invest in gold, you'll benefit whenever the economy grows.
You'll also earn interest on your investments, which helps you grow your wealth. Additionally, you won't lose cash if the gold price falls.
What Should Your IRA Include in Precious Metals?
It is important to remember that precious metals can be a good investment for anyone. It doesn't matter how rich you are to invest in precious metals. There are many methods to make money off of silver and gold investments.
You might consider purchasing physical coins, such as bullion bars and rounds. Stocks in companies that produce precious materials could be purchased. You might also want to use an IRA rollover program offered through your retirement plan provider.
Regardless of your choice, you'll still benefit from owning precious metals. Even though they aren't stocks, they still offer the possibility of long-term growth.
Their prices are more volatile than traditional investments. If you decide to sell your investment, you will likely make more than with traditional investments.
Is it a good retirement strategy to buy gold?
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. There are other ways to invest gold. It is best to research all options and make informed decisions based on your goals.
If you don't want to keep your wealth safe, buying shares in companies that extract gold and mining equipment could be a better choice. If you require cash flow, gold stocks can work well.
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 may include stocks that are owned by gold miners or precious metals refining companies as well as commodity trading firms.
Can I keep physical gold in an IRA?
Gold is money and not just paper currency. Gold is an asset people have used for thousands years as a place to store value and protect their wealth from economic uncertainty and inflation. Today, investors use gold as part of a diversified portfolio because gold tends to do better during financial turmoil.
Many Americans now invest in precious metals. Although owning gold does not guarantee that you will make money investing in it, there are many reasons to consider adding gold into your retirement portfolio.
Gold has historically performed better during financial panics than other assets. 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 turbulent market conditions gold was one of few assets that outperformed stock prices.
Another benefit to investing in gold? It has virtually zero counterparty exposure. Your shares will still be yours even if your stock portfolio drops. However, if you have gold, your value will rise even if the company that you invested in defaults on its loans.
Gold provides liquidity. This means you can easily sell your gold any time, unlike other investments. You can buy gold in small amounts because it is so liquid. This allows for you to benefit from the short-term fluctuations of the gold market.
Can the government take your gold?
Your gold is yours and the government cannot take it. You worked hard to earn it. It belongs entirely to you. This rule may not apply to all cases. You can lose your gold if you have been convicted for fraud against the federal governments. Additionally, your precious metals may be forfeited if you owe the IRS taxes. You can keep your gold even if your taxes are not paid.
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- 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)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement accounts
The best place online to buy silver and gold
Before you can buy gold, it is important to understand its workings. Gold is a precious metal similar to platinum. Because of its resistance to corrosion and durability, it is very rare. It is hard to use, so most people prefer jewelry made of it to real bars of gold.
Today, there are two types available in gold coins: one is legal tender and the other is bullion. The legal tender coins are issued for circulation in a country. They usually have denominations such as $1, $5, $10, and so on.
Bullion coins should only be used for investment purposes. Inflation can cause their value to increase.
They aren't circulated in any currency exchange systems. A person can buy 100 grams of gold for $100. The buyer receives 1 gram of gold for every dollar spent.
When looking to buy precious metals, the next thing you should be aware of is where it can be purchased. There are many options for buying gold directly from dealers. You can start by visiting your local coin shop. You might also consider going through a reputable online seller like eBay. You can also look into buying gold online from private sellers.
Private sellers are individuals that offer gold at wholesale or retail prices. When selling gold through private sellers, you pay a commission fee of 10% to 15% per transaction. A private seller will usually return less money than a coin shop and eBay. However, this option is often a great choice when investing in gold since it gives you more control over the item's price.
The other option is to purchase physical gold. While physical gold is easier than paper certificates to store, you still need to make sure it is safe. To ensure that your physical gold remains safe, you need to secure it in an impenetrable container such as a vault or safety deposit box.
To purchase gold by yourself, you can visit a bank and a pawnshop. A bank will provide you with a loan that allows you to purchase the amount of gold you desire. These are small businesses that let customers borrow money against the items they bring to them. Banks often charge higher interest rates then pawnshops.
Finally, another way to buy gold is to simply ask someone else to do it! Selling gold is easy too. Contact a company such as GoldMoney.com, and you can set up a simple account and start receiving payments immediately.
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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