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Cryptocurrency Updates by Solid ECN

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Last week, the BTCUSD pair had an ambiguous trend: the quotes rose to the 42950 area but then lost all the gains and fell to 38500, where they are now being traded.

The cryptocurrency sector is under pressure from a likely sharp change in monetary policy parameters by the US Federal Reserve at its next meeting in May. Last Thursday, the head of the US regulator, Jerome Powell, announced the need to increase the interest rate by 50 basis points to slow down the growth of record inflation. The ?hawkish? policy of the authorities will strengthen the dollar's position relative to other assets, including cryptocurrencies. Against this background, there is an outflow of funds from major players in the market. ETH, ADA, and SOL suffered the most, but BTC is the leader in capital loss. According to the analytical company CoinShares, the active withdrawal of funds from the first cryptocurrency has been going on for the second week, and since the beginning of this month, ?digital gold? has lost 196M dollars of investor funds.

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#1 - April 25, 2022, 12:15:28 PM

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Since the beginning of this month, the ETHUSD pair has maintained a downward trend: earlier, the price dropped to the area of 2800, but then regained lost positions, returning to the 3000 mark.

The trading instrument is influenced by two main opposite factors. The expectation of a sharp increase in interest rates from the US Fed at a meeting in early May exerts pressure on the positions of ETH, as well as on the rest of the cryptocurrency sector. The consequence of this may be the strengthening of the US currency, but already there is an outflow of capital from the largest digital assets (BTC, ETH, ADA, SOL and others). So, over the past three weeks, ETH has lost about 59.3M dollars, or about a third of the total amount of funds withdrawn from the sector during this period.

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On the other hand, the rapid transition of the Ethereum network from the Proof-of-Work (PoW) algorithm to Proof-of-Stake (PoS) prevents the decline in quotations. Despite the fact that the merger of the Ethereum and Ethereum 2.0 networks was postponed for several months (previously it was assumed that it would happen in June), investors remain optimistic, believing that the new network will significantly speed up transaction processing and ETH will be able to catch up with digital gold in capitalization.

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Currently, the key zone for the "bulls" is 3065-3125 (the middle line of the Bollinger Bands, Murray [4/8]), with the breakout of which upward dynamics will continue to 3281.25 (Fibo retracement of 38.2%, Murray [5/8]), 3437.5 (Murray [6/8]). Consolidation of the price below the level of 2925 (Fibo retracement of 23.6%) will give the prospect of a decline to the levels of 2812.50 (Murray [2/8]), 2656.25 (Murray [1/8]), 2500 (Murray [0/8]).

Technical indicators do not give a single signal: the Bollinger Bands are directed downwards, the MACD histogram is stable in the negative zone, but the Stochastic has reversed upwards.

Resistance levels: 3125, 3281.25, 3437.5 |Support levels: 2925, 2812.5 2656.25, 2500
#2 - April 26, 2022, 10:04:32 AM

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