Ethereum Technical Analysis: ETH Momentum Stops Short After Hitting $2,100 Barrier

The momentum of Ethereum (ETH) came to a halt after reaching the $2,100 resistance level. Similar to bitcoin, ETH experienced a 2% increase against the US dollar on Friday. Within a 24-hour period, the price of ether fluctuated between $2,024 and $2,111, demonstrating a volatile yet upward movement. At present, the market capitalization of ETH stands at $250 billion, with a trading volume of $17.56 billion within the same 24-hour timeframe.

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, indicating a balanced market position. Similarly, the Stochastic oscillator also reflects neutrality with a reading of 78.2. On the other hand, the commodity channel index (CCI) suggests a bearish outlook with a reading of 129.9, a sentiment supported by the Momentum indicator at 51.9.

In contrast, Ethereum's moving average convergence/divergence (MACD) leans towards optimism with a level of 9.4. When examining Ethereum's moving averages across different time frames (10, 20, 30, 50, 100, and 200 days), both the exponential moving average (EMA) and simple moving average (SMA) indicate bullish tendencies. Notably, the EMAs surpass their SMA counterparts, further reinforcing the current strength of bullish momentum in the Ethereum market.

Chart Analysis

On the 4-hour chart of ETH/USD, a positive trajectory is observed. The chart displays a pattern of escalating highs and lows following a rebound from a strong support level at $1,520. The daily chart mirrors this bullish pattern, indicating a recovery from a significant slump to around $877, followed by a consistent upward trend. Both charts suggest a consolidation near the $2,100 mark, which serves as a pivotal point for potential future price movements.

Market Outlook

In light of Ethereum's current market stance, a cautiously optimistic perspective emerges. For traders considering long positions, a breakout above the resistance level at $2,150, accompanied by a surge in trading volume, could serve as a confirmation for a favorable entry point. Conversely, a pullback to established support levels may also present opportunities for entry. When it comes to exit strategies, setting a stop loss just below recent swing lows or established support levels can help minimize risks. Similarly, capitalizing on profits at previous peaks or resistance zones may enhance returns.

Bull Verdict:

Ethereum's market indicators, particularly the alignment of EMAs over SMAs across different timeframes and the consistent formation of higher highs and lows on the 4-hour and daily charts, strongly suggest a bullish trend. The consolidation near the $2,100 level, coupled with the potential breakout above the $2,150 resistance, further reinforces this optimistic outlook.

Bear Verdict:

Despite some bullish signals, it's important not to overlook 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 possibility of downward movement. Additionally, the consolidation near the $2,100 mark could act as a significant barrier for Ethereum, potentially leading to a downturn.

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Frequently Asked Questions

Should You Buy or Sell Gold?

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For a Roth IRA you will need to complete Form 8903. The process for an ordinary IRA will not be affected.

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Can the government seize your gold?

Your gold is yours, so the government cannot confiscate it. It’s yours, and you earned it by working hard. It belongs exclusively to you. However, there may be some exceptions to this rule. You could lose your gold if convicted of fraud against a federal government agency. Your precious metals can also be lost if you owe tax to the IRS. You can keep your gold even if your taxes are not paid.

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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. There is much more to gold than meets your eye.

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.”

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Gold is money. Not just paper currency. People have used gold as a currency for thousands of centuries to preserve their wealth and keep it safe from inflation. Gold is a part of a diversified portfolio that investors can use to protect their wealth from financial uncertainty.

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Statistics

Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
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)
You can only purchase gold bars at least 99.5% purity. (forbes.com)
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)
If you take distributions before hitting 59.5, you’ll owe a 10% penalty on the amount withdrawn. (lendedu.com)

External Links

How To

The History of Gold as an Asset

Gold was a currency from ancient times until the early 20th century. It was universally accepted due to its purity and divisibility, beauty, scarcity, and durability. Due to its value, it was also internationally traded. Because there were no internationally recognized standards for measuring and weighing gold, the different weights of this metal could be used worldwide. One pound sterling in England was equivalent to 24 carats silver, while one livre tournois in France was equal 25 carats. In Germany, one mark was equivalent to 28 carats.

In the 1860s the United States began issuing American currency made up 90% copper (10% zinc) and 0.942 gold (0.942 pure). This led to a decline in demand for foreign currencies, which caused their price to increase. The United States began minting large quantities gold coins at this time, which led to a drop in the price. They needed to pay off debt because they had too much money coming into circulation. To do so, they decided to sell some of the excess gold back to Europe.

Many European countries began accepting gold in exchange for the dollar because they did not trust it. However, after World War I, many European countries stopped taking gold and began using paper money instead. Since then, the price of gold has increased significantly. Although the price of gold fluctuates today, it remains one of your most safe investments.

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By: Jamie Redman
Title: Ethereum Technical Analysis: ETH Momentum Stops Short After Hitting $2,100 Barrier
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