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54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Ethereum unable to break Resistance at $4000 as Bears dominate market

The crypto market had shown promising signs of recovery and solid bullish momentum during the first week of April. Since this year, most coins have created new ATHs after stalling at lower positions. Bitcoin reached its highest point so far in 2022 at $48200. The 48k region had become a strong resistance point for Bitcoin, which it failed to overcome. The bears attacked the market so hard at this point, taking the price of Bitcoin back to 43k.  

 

Similarly, Ethereum, which witnessed a rapid price surge that took its price to a new ATH at $3581.20 earlier, would face strong resistance in this region. The bears immediately attacked the market and pushed its price below $3500.  

 

Ethereum seems to be recovering after testing its strong support at $3100 yesterday. The price is currently trading at $3200 during the Asian session. The next weak resistance for Ethereum to break today is $3300. 

 

Any failure to sustain this current price level will take us back to the support at $3,000. The next significant support level below this level is $2,370. 

 

On the other hand, there are increased worries in the crypto market that the current bearish trend might last longer all through April and may extend to May. This is due to the imminent hike in interest rate coming from the Fed, which many fear might commence next month with the next Fed meeting. 

 

Currently, the bears are dominating the crypto market once more, with most coins going back to retest their previous support. 

 

Bitcoin is expected to close above 44k this week to turn bullish again. Ethereum, on its part, needs to close above $3300 this week to reclaim its bullish momentum. The weekly close, no doubt, will be a significant indicator of what to expect next for Ethereum and Bitcoin and the crypto market at large.

Last Updated: 08/04/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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