April 26, 2018

Ethereum Classic Price Technical Analysis – ETC/USD Under Pressure

Key Highlights

Ethereum classic price started a fresh decline from the $23.00 swing high against the US dollar.
There was a break below a key bullish trend line with support at $20.40 on the hourly chart of the ETC/USD pair (Data feed via Kraken).
The pair is currently trading below $20.00 and it is at risk of more declines in the near term.

Ethereum classic price is under pressure against the US Dollar and bitcoin. ETC/USD may consolidate in the short term before surpassing $20.00.

Ethereum Classic Price Resistance

After a nice upside move, ETC price failed to test and break the $23.00 resistance against the US dollar. The ETC/USD pair formed a top at $22.90 and started a downside move. It declined and surpassed a few important supports such as $21.00 and $20.50. More importantly, there was a break and close below the $20.00 support and the 100 hourly simple moving average.

During the drop, there was a break below a key bullish trend line with support at $20.40 on the hourly chart of the ETC/USD pair. The pair traded as low as $18.13 before buyers appeared. It started an upside recovery and tested the 23.6% Fib retracement level of the last decline from the $22.90 high to $18.13 low. However, there is a bearish trend line with current resistance at $19.15, which is acting as a hurdle. Above $19.15, the $20.00 level is a crucial hurdle along with the 100 hourly SMA. Above $20.00, the price may test the 50% Fib retracement level of the last decline from the $22.90 high to $18.13 low.

The chart indicates that the pair may consolidate above $18.00 for some before moving higher. Having said that, a break above the $20.00 and $20.50 resistance levels won’t be easy.

Hourly MACD – The MACD for ETC/USD is slightly in the bullish zone.

Hourly RSI – The RSI for ETC/USD is moving higher towards the 50 level.

Major Support Level – $18.20

Major Resistance Level – $20.00

Published at Thu, 26 Apr 2018 07:08:56 +0000

Analysis

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March 24, 2017

Fed Financial Statements: $6 Billion Drop in Fed Remittances

mises.org / C.Jay Engel / March 24, 2017

As the Fed continues to increase the rate of interest it pays on excess reserves, the Fed’s profits that are left over are slowly going to shrink in size. Since the Fed sends its profits to the US Treasury each year, the US Treasury will be receiving less. The Wall Street Journal reported on Friday:

The Federal Reserve sent $91.5 billion in profits to the Treasury Department last year, a $6 billion decline that officials have long expected as a result of rising interest rates.

The Fed’s total net income declined by $7.6 billion, to $92.4 billion, according to the Fed’s audited financial statements released Friday. The decline was primarily the result of higher interest payments it made to banks on the reserves they keep at the central bank.

David Howden has explained this process — and the implications for “Fed independence” — rather nicely:

Each year, the Fed remits to the US Treasury its net income, and thus provides the federal government with an important source of funding.

For the US Treasury, Fed remittances are something of a free lunch. When someone buys a Treasury bond, the government must pay them interest. This applies to the Fed as well, but then at year-end the Fed remits the interest back to the Treasury.