27.11.202310:43 Forex Analysis & Reviews: Technical Analysis of ETH/USD for November 27, 2023

Crypto Industry News:

The US Internal Revenue Service (IRS) announced that for the 2024 tax year, "the limit on annual contributions to a [retirement] account has increased to $7,000 from $6,500." The contribution limit for 401(k) accounts also increased by $500 to $23,000. This is good news for the cryptocurrency market. This means that Bitcoin investors who are saving for retirement using a self-directed retirement account can now contribute $500 more to it than before.

The IRS increases the contribution limit, probably in practice in response to inflation. It has been falling in the US, but has nonetheless reduced the purchasing value of the US dollar in recent years.

It is worth adding that as part of a self-retirement account, Americans have the opportunity to purchase a wide range of alternative assets. In practice, it is gold, real estate and cryptocurrencies such as bitcoin.

401(k) retirement accounts are key here. This is a type of retirement savings plan that is very popular in the United States. The name comes from Section 401(k) of the Internal Revenue Code, which governs the operation of these types of plans.

A 401(k) allows employees to save for retirement by putting aside a portion of their salary before taxes. These funds are placed in a special retirement account and can be invested in various financial instruments, such as stocks, bonds, index funds and cryptocurrencies. Contributions to a 401(k) account are deductible from an employee's gross income, which means they are not subject to federal tax until the funds are withdrawn for retirement.

Technical Market Outlook:

The ETH/USD pair has been rejected from the level of $2,132 again which makes this level a possible Double Top on the H4 time frme chart. The market moved lower towards the technical support seen at the level of $2,040, but the crucial short-term technical support for ETH is situated at $1,911, and only a clear and sustained breakout below this level would prompt a shift in the short-term outlook to bearish. The next target for bulls is the swing high located at the level of $2,135.

Weekly Pivot Points:

WR3 - $2,700

WR2 - $2,322

WR1 - $2,191

Weekly Pivot - $1,983

WS1 - $1,832

WS2 - $1,624

WS3 - $1,265

Trading Outlook:

The Ethereum market has consistently formed lower highs and lower lows since reaching the swing high in mid-August 2022 at $2,029. For the bulls to sustain the upward trend, breaking through this pivotal level is imperative. The crucial technical support at $1,368 holds significance, and as long as the market maintains trades above this level, the overall outlook remains bullish.