Ethereum Technical Analysis: ETH Slips 4%, Traders Eye Critical Support With Caution

Ethereum's Market Behavior

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.

Stability Amidst Market Fluctuations

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.

Positive Trend Projections

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 Levels

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.

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.

Bullish Outlook

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.

Bearish Sentiment

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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What do you think about ether's market action on Wednesday? Share your thoughts and opinions about this subject in the comments section below.

Frequently Asked Questions

Who is entitled to the gold in a IRA that holds gold?

The IRS considers an individual who owns gold as holding “a form of money” subject to taxation.

To be eligible for the tax-free status, you must possess at least $10,000 gold and have had it stored for at least five consecutive years.

The purchase of gold can protect you from inflation and price volatility. But it's not smart to hold it if your only intention is to use it.

If you plan to eventually sell the gold, you'll need a report on its value. This could impact the amount of capital gains taxes your owe if you cash in your investments.

A financial planner or accountant should be consulted to discuss your options.

Can I keep a Gold ETF in a Roth IRA

While a 401k may not offer this option for you, it is worth considering other options, such an Individual Retirement Plan (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 can provide tax advantages, as employees are allowed to share in company stock and the profits generated by the business. The money invested in the ESOP is then taxed at lower rates than if it were held directly in the hands of the employee.

Also available is an Individual Retirement Annuity. You can make regular payments to your IRA throughout your life, and you will also receive income when you retire. Contributions to IRAs will not be taxed

How much should I contribute to my Roth IRA account?

Roth IRAs are retirement accounts where you deposit your own money tax-free. These accounts are not allowed to be withdrawn before the age of 59 1/2. However, if you do decide to take out some of your contributions before then, there are specific rules you must follow. First, your principal (the original deposit amount) cannot be touched. You cannot withdraw more than the original amount you 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. You will pay income taxes when you withdraw your earnings. Let's assume that you contribute $5,000 each year to your Roth IRA. Let's also say that you earn $10,000 per annum after contributing. This would mean that you would have to pay $3,500 in federal income tax. That leaves you with only $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 would also lose half of your earnings because they are subject to another 50% tax (half off 40%). Even though you had $7,000 in your Roth IRA account, you only received $4,000.

There are two types if Roth IRAs, Roth and Traditional. Traditional IRAs allow you to deduct pretax contributions from your taxable income. Your traditional IRA can be used to withdraw your balance and interest when you are retired. There are no restrictions on the amount you can withdraw from a Traditional IRA.

Roth IRAs don't allow you deduct contributions. However, once you retire, you can withdraw your entire contribution plus accrued interest. There is no minimum withdrawal amount, unlike traditional IRAs. It doesn't matter if you are 70 1/2 or older before you withdraw your contribution.

What is a gold IRA account?

The Gold Ira Accounts are tax-free investment options for those who want to make investments in precious metals.

You can purchase physical gold bullion coins anytime. To start investing in gold, it doesn't matter if you are retired.

The beauty of owning gold as an IRA is you can hold on to it forever. Your gold holdings will not be subject to tax when you are gone.

Your heirs can inherit your gold and avoid capital gains taxes. Your gold is not part of your estate and you don't have to include it in the final estate report.

First, an individual retirement account will be set up to allow you to open a golden IRA. Once you've done that, you'll receive an IRA custody. This company acts as an intermediary between you and IRS.

Your gold IRA custodian will handle the paperwork and submit the necessary forms to the IRS. This includes filing annual reports.

Once you've established your gold IRA, you'll be able to purchase gold bullion coins. The minimum deposit required to purchase gold bullion coins is $1,000 The minimum deposit is $1,000. However, you will receive a higher percentage of interest if your deposit is greater.

When you withdraw your gold from your IRA, you'll pay taxes on it. You'll have to pay income taxes and a 10% penalty if you withdraw the entire amount.

However, if you only take out a small percentage, you may not have to pay taxes. However, there are some exceptions. However, there are exceptions. If you take 30% or more of your total IRA asset, you'll owe federal Income Taxes plus a 20% penalty.

It's best not to take out more 50% of your total IRA investments each year. A violation of this rule can lead to severe financial consequences.

Statistics

  • 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)
  • This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
  • (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)
  • Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
  • Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)

External Links

wsj.com

irs.gov

finance.yahoo.com

bbb.org

How To

Gold IRAs: A Growing Trend

As investors look for ways to diversify their portfolios and protect themselves against inflation, the gold IRA trend is on the rise.

Owners of the gold IRA can use it to invest in physical bars and bullion gold. This IRA can be used to grow your wealth tax-free and is an alternative option to stocks and bonds.

A gold IRA allows investors to manage their assets without worrying about market volatility. Investors can protect themselves from inflation and other possible problems by using the gold IRA.

Investors also have the benefit of physical gold, which has unique properties such durability, portability and divisibility.

Additional benefits of the gold IRA include the ability to quickly pass ownership to heirs. Additionally, the IRS does not consider gold a money or a commodity.

This means that investors who are looking for financial safety and security are becoming more interested in the gold IRA.

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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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