Ethereum Technical Analysis: Ether Bulls Clench the Reins and Charge Toward Resistance

Ethereum's Market Behavior

Ethereum's market behavior on Dec. 27, 2023 presents a complex tapestry of signals for traders and investors alike. Oscillating within a 24-hour price range of $2,189 to $2,290, Ethereum demonstrated a consolidation phase, subtly hinting at both potential gains and imminent cautions. As the market capitalization holds at $273 billion with significant trading volume, the second leading crypto asset's future seems as volatile as it is promising.

Ethereum Price and Analysis

Ethereum (ETH) stands at a price of $2,278 with a trading volume of $15.34 billion over the past 24 hours. ETH/USD oscillators and moving averages depict a market in a state of neutrality with a slight bias toward bullishness. The relative strength index at 55.9 and momentum at 87.8 suggest cautious optimism among traders.

The array of oscillators like the Stochastic (64.5), commodity channel index (3.7), and moving average convergence divergence (MACD) level (34.4) predominantly indicate a neutral stance. However, the momentum oscillator signals positivity, suggesting an undercurrent of bullish sentiment that might influence upcoming price movements.

The moving averages (MAs) are overwhelmingly in the bullish zone across various time frames, from short-term 10-day to long-term 200-day averages. This alignment indicates a strong underlying support for ether's price, hinting at the potential for an upward trajectory.

Price Analysis and Consolidation

The daily chart elucidates a fluctuating trend, with no distinct direction and the price oscillating between support at approximately $1,907 and resistance near $2,407. The absence of significant volume spikes and a clear pattern suggests a period of consolidation and indecision in ether markets.

A more detailed 4-hour chart reveals a recent uptrend marked by a large spike, indicating a short-term bullish sentiment. The increased volume accompanying this movement suggests a growing interest that might translate into a sustained upward trend as well. For those looking to capitalize on these trends, potential entry points could be identified during slight retracements, maintaining above short-term support levels. Exit points might be just below the recent resistance level, capturing short-term gains while managing risks effectively.

Bull and Bear Verdict

Bull Verdict: The prevailing buying signals across most moving averages, coupled with the slight uptick in momentum, provide a cautiously optimistic outlook for Ethereum. The resilience in maintaining above critical support levels and the recent upswing observed in the 4-hour chart accentuates a bullish sentiment.

Bear Verdict: Despite the current buy signals from moving averages and momentary uptrend in the 4-hour chart, the overall market's indecision and neutrality cannot be overlooked. The proximity to key resistance levels without a definitive breakout and the oscillators' predominantly neutral stance hint at potential exhaustion in buying pressure.

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Frequently Asked Questions

Can I buy gold with my self-directed IRA?

However, gold can only be purchased with your self-directed IRA. To do so, you must first open a brokerage account at TD Ameritrade. You can also transfer funds from another retirement account if you already have one.

Individuals can contribute as much as $5,500 per year ($6,500 if married filing 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 to invest in gold, you'll want to consider purchasing physical bullion rather than investing in futures contracts. Futures contract are financial instruments that depend on the gold price. These financial instruments allow you to speculate about future prices without actually owning the metal. Physical bullion, however, is real gold and silver bars that you can hold in your hand.

Can I hold a gold ETF in a Roth IRA?

A 401(k) plan may not offer this option, but you should consider other options, such as an Individual Retirement Account (IRA).

Traditional IRAs allow for contributions from both employees and employers. Another way to invest in publicly traded companies is through an Employee Stock Ownership Plan.

An ESOP gives employees tax advantages as they share the stock of the company and the profits it makes. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual's hands.

A Individual Retirement Annuity (IRA), is also available. An IRA allows for you to make regular income payments during your life. Contributions to IRAs don't have to be taxable

How much money should I put into my Roth IRA?

Roth IRAs are retirement accounts where you deposit your own money tax-free. You can't withdraw money from these accounts before you reach the age of 59 1/2. There are some rules that you need to keep in mind if you want to withdraw funds from these accounts before you reach 59 1/2. First, your principal (the original deposit amount) cannot be touched. This means that regardless of how much you contribute to an account, you cannot take out any more than you initially contributed. If you are able to take out more that what you have initially contributed, you must pay taxes.

The second rule is that you cannot withdraw your earnings without paying income taxes. Withdrawing your earnings will result in you paying taxes. For example, let's say that you contribute $5,000 to your Roth IRA every year. Let's also assume that you make $10,000 per year from your Roth IRA contributions. Federal income taxes would apply to the earnings. You would be responsible for $3500 So you would only have $6,500 left. The amount you can withdraw is limited to the original contribution.

Therefore, even if you take $4,000 out of your earnings you still owe taxes on $1,500. You'd also lose half the earnings that you took out, as they would be subject to a second 50% tax (half of 40%). You only got back $4,000. Even though you were able to withdraw $7,000 from your Roth IRA,

There are two types of Roth IRAs: Traditional and Roth. A traditional IRA allows for you to deduct pretax contributions of your taxable income. To withdraw your retirement contribution balance plus interest, your traditional IRA is available to you. You have the option to withdraw any amount from a traditional IRA.

Roth IRAs won't let you deduct your contributions. However, once you retire, you can withdraw your entire contribution plus accrued interest. There is no minimum withdrawal requirement, unlike traditional IRAs. You don’t have to wait for your turn 70 1/2 years before you can withdraw your contributions.

What Does Gold Do as an Investment Option?

Gold's price fluctuates depending on the supply and demand. Interest rates can also affect the gold price.

Due to their limited supply, gold prices fluctuate. Physical gold is not always in stock.

How much should precious metals make up your portfolio?

This question can only be answered if we first know what precious metals are. Precious metals have elements with an extremely high worth relative to other commodity. This makes them extremely valuable for trading and investing. Gold is today the most popular precious metal.

But, there are other types of precious metals available, including platinum and silver. The price volatility of gold can be unpredictable, but it is generally stable during periods of economic turmoil. It is not affected by inflation or deflation.

As a general rule, the prices for all precious metals tend to increase with the overall market. That said, they do not always move in lockstep with each other. If the economy is struggling, the gold price tends to rise, while the prices for other precious metals tends to fall. Investors expect lower interest rates which makes bonds less appealing investments.

The opposite effect happens when the economy is strong. Investors choose safe assets such Treasury Bonds over precious metals. They become less expensive and have a lower value because they are limited.

To maximize your profits when investing in precious metals, diversify across different precious metals. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.

Can the government seize your gold?

You own your gold and therefore the government cannot seize it. You have earned it by working hard for it. It belongs exclusively to you. But, this rule is not universal. Your gold could be taken away if your crime was fraud against federal government. You can also lose precious metals if you owe taxes. You can keep your gold even if your taxes are not paid.


  • You can only purchase gold bars at least 99.5% purity. (
  • Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (
  • 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. (
  • If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (
  • Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (

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How To

Gold Roth IRA guidelines

It is best to start saving early for retirement. As soon as you become eligible, which is usually around age 50, start saving and keep it up throughout your career. It is important to invest enough money each and every year to ensure you get adequate growth.

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. These savings vehicles are great for those who don't have access or can't get employer matching funds.

Savings should be done consistently and regularly over time. You will lose any potential tax advantages if you don't contribute enough.

By: Jamie Redman
Title: Ethereum Technical Analysis: Ether Bulls Clench the Reins and Charge Toward Resistance
Sourced From:
Published Date: Wed, 27 Dec 2023 14:20:09 +0000

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