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.

Register your email here to receive weekly price analysis updates directly to your inbox:

What are your thoughts on Ethereum's market action on Friday morning? Share your opinions and insights in the comments section below.

Frequently Asked Questions

Should You Buy or Sell Gold?

In the past, gold was considered a haven for investors during economic turmoil. Today, many people are looking to precious metals like gold and avoiding traditional investments like bonds and stocks.

The gold price has been in an upward trend for the past few years, but it remains relatively low compared with other commodities like silver or oil.

Some experts think that this could change in the near future. They believe gold prices could increase dramatically if there is another global financial crises.

They also point out that gold is becoming popular because of its perceived value and potential return.

If you are considering investing in gold, here are some things that you need to keep in mind.

Consider whether you will actually need the money that you are saving 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 one offers different levels security and flexibility.
Don't forget that gold does not offer the same safety level as a bank accounts. Your gold coins may be lost and you might never get them back.

Do your research before you buy gold. You should also ensure that you do everything you can to protect your gold.

How do I open a Precious Metal IRA

It is important to decide if you would like an Individual Retirement Account (IRA). If you do, you must open the account by completing Form 8606. You will then need to complete Form 5204 in order to determine which type IRA you are eligible. This form should be filled within 60 calendar days of opening the account. You can then start investing once you have this completed. You may also choose to contribute directly from your paycheck using payroll deduction.

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

To be eligible for a precious metals IRA, you will need to meet certain requirements. The IRS stipulates that you must have earned income and be at least 18-years old. For any tax year, your earnings must not exceed $110,000 ($220,000 for married filing jointly). Additionally, you must make regular contributions. These rules apply regardless of whether you are contributing directly to your paychecks or through your employer.

An IRA for precious metals allows you to invest in gold and silver as well as platinum, rhodium, and even 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 metallics IRA to invest in companies that deal with precious metals. This option is available from some IRA providers.

However, investing in precious metals via an IRA has two serious drawbacks. First, they are not as liquid or as easy to sell as stocks and bonds. It is therefore harder to sell them when required. They also don't pay dividends, like stocks and bonds. Therefore, you will lose money over time and not gain it.

Can I purchase 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. If you already have a retirement account, funds can be transferred to it.

The IRS allows individuals up to $5.500 annually ($6,500 if you are married and filing jointly). This can be contributed to a traditional IRA. Individuals can contribute up $1,000 per annum ($2,000 if they are married and jointly) directly 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. You can speculate on future prices, but not own the metal. But, physical bullion is real bars of gold or silver that you can hold in one's hand.

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.

Do You Need to Open a Precious Metal IRA

Precious metals are not insured. This is the most important fact to know before you open an IRA account. You cannot recover any money you have invested. All your investments can be lost due to theft, fire or flood.

Investing in physical gold and silver coins is the best way to protect yourself from this type of loss. These items are timeless and have a lifetime value. They are likely to fetch more today than the price you paid for them in their original form.

Consider a reputable business that offers low rates and good products when opening an IRA. It's also wise to consider using a third-party custodian who will keep your assets safe while giving you access to them anytime.

When you open an account, keep in mind that you won't receive any returns until your retirement. Keep your eyes open for the future.

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.”

Gold, unlike other paper currencies created by governments is mined directly from the earth. That makes it very valuable because it's rare and hard to create.

The supply-demand relationship determines the gold price. People tend to spend more when the economy is healthy, which means that fewer people are able to mine gold. The value of gold rises as a consequence.

The flip side is that people tend to save money when the economy slows. This leads to more gold being produced which decreases its value.

This is why gold investment makes sense for both individuals and businesses. You will benefit from economic growth if you invest in gold.

Your investments will also generate interest, which can help you increase your wealth. If gold's value falls, you don't have to lose any of your investments.

What is the best way to hold physical gold?

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.

Many Americans are now more inclined to invest in precious metals like gold and silver than stocks or bonds. While owning gold doesn't guarantee you'll make money investing in gold, there are several reasons why it may make sense to consider adding gold to your retirement portfolio.

Gold has historically performed better during financial panics than other assets. Between August 2011 and early 2013 gold prices soared nearly 100 percent, while the S&P 500 plunged 21 percent. Gold was one of the few assets that performed better than stocks during turbulent market conditions.

The best thing about gold investing is the fact that there's virtually no counterparty risk. Even if your stock portfolio is down, your shares are still yours. But if you own gold, its value will increase even if the company you invested in defaults on its debt.

Gold provides liquidity. This means that you can sell gold anytime, regardless of whether or not another buyer is available. You can buy gold in small amounts because it is so liquid. This allows you take advantage of the short-term fluctuations that occur in the gold markets.

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.

—————————————————————————————————————————————————————————————-

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