The world of cryptocurrencies has developed at a breakneck pace over the past few years, and now it has emerged that tech behemoth Microsoft (NASDAQ:MSFT) is going to work with Ethereum to create new digital assets. Until a few years ago, it was almost unthinkable that one of the biggest companies in the world was going to enter the crypto space—but now, things have certainly changed.
Microsoft is apparently working with ETH in order to find a way to audit newly created crypto tokens accurately.
In addition to that, the company also noted that the Azure Blockchain Tokens are going to be put into use in this particular project. Azure is the company’s very own cloud service, and over the years it has grown into a multibillion-dollar business. Azure Blockchain Tokens are operated through the Ethereum blockchain, and this is where the world’s second-biggest cryptocurrency comes into the picture. Now that the two have come together for this project, great things are sure to come to the crypto space—legitimacy, standard procedures, and who knows what else.
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The founder of Ethereum, Vitalik Buterin, has stated that the arrival of new tokens has been particularly disruptive for the blockchain space and has created extreme congestions. By extension, it should be a problem for Azure as well, due to its presence on the network.
The principal architect at Microsoft stated what exactly Azure is going to bring to the table. He said, “We’re bringing the kind of efficiency you see in Amazon Fresh and Amazon Now everywhere… because you’re closing the gap between parties collaborating together and working through business processes.”
What do you think about Microsoft’s plans with Ethereum? Do you think this will bring good things to the crypto market?
Featured image: DepositPhotos © Violka08
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Technical Price Analysis: Ethereum (ETH) and Ripple (XRP)
‘Ethereum killer’ community helping new use cases’ exploration: Ash Egan
Ash Egan, a Partner at venture capital firm Accomplice, recently featured on an edition of the ‘On The Brink with Castle Island’ podcast to discuss his view of the current crypto-asset investment landscape. In doing so, Egan highlighted ongoing innovations within the “Ethereum killer” community and how it “expands the sandbox” that allows exploration of new use cases for the crypto-ecosystem. He said,
“We are not going to invest in four Layer 1’s that have very similar approach.”
Moreover, the entrepreneur stated that while corporations such as Facebook and other non-financial organizations have taken charge of crypto-innovation, “the hope is that anyone can participate in crypto-networks.” With respect to mass adoption, Egan claimed that users need to be monetized, stressing on steps such as advertisements and referrals. As a result, in the liquidity layer, there is a higher possibility of developments around having a native asset tied to in-house tokens for providing more dividends or governance rights.
Towards the technical end of the conversation, Egan highlighted the use of smart contract wallets and their most efficient interest rates. In this regard, he claimed that similar technologies are being developed which may result in fewer use-cases making sense for each ecosystems.
Additionally, Egan stated that the general public has a different perception of cryptocurrency’s true definition. For a broader understanding of the ecosystem, he reiterated that “crypto-networks are democratizing access to digital and financial systems.”
Ethereum’s breach of descending broadening wedge could push it down to $166
With the Istanbul hardfork scheduled to happen in 17 days, the Ethereum community is keeping its eye on the blockchain’s native cryptocurrency, ETH. Valued at around $174 at the time of writing, Ether had a market cap of more than $19 billion, with almost $8.2 billion worth of ETH traded in the last 24 hours, according to CoinMarketCap. EXX exchange handled the most amount of ETH volume traded over the period, which accounted for 3.53% of the coin’s daily volume.
Ethereum 1-hour chart
Source: ETH/USD on TradingView
The 1-hour chart highlighted that ETH had entered a descending broadening wedge towards the start of last week, with the price shuttling between the two trend lines since. The formation of a descending broadening wedge usually does not create any specific trend with regards to volume. However, the volume is said to spike as the price approaches the trend lines for a breakout.
The 50MA could be seen dipping down below the price line, indicating bearish pressure on ETH for the short-term. Further, MACD, with the signal line having recently regained its place over the MACD line, also highlighted short-term downward movement in price.
With the EMA Ribbon lines diverging over the price in response to the mean reversion that took place a day before, it is quite likely that ETH will continue moving down the pattern for the next week or so. With the price currently preparing to test the lower trend line, a spike in volume could indicate a downward breakout in the short-term.
Assuming a downward breakout happens in the next few days, ETH could drop down to values near $166. However, this kind of pattern exhibits upward-facing breakouts in 72% of cases, suggesting that ETH will likely bounce off the lower trend line, continue through the pattern, before an eventual breakout upwards to above $190 in the coming weeks.
Ethereum price analysis: ETH/USD extends the decline below $180.00
- ETH bears engineered a strong sell-off below the critical support area.
- The downside momentum remains strong at this stage.
Ethereum, now the second-largest digital asset with the current market value of $19.3 billion, has recovered from the recent low of $174.62, though it is still 3.5% lower from this time on Monday. At the time of writing, ETH/USD is changing hands at $176.57.
Ethereum’s technical picture
On the daily charts, ETH/USD has moved below SMA50 (Simple Moving Average) at $180.90 and smashed psychological $180.00 and attempted a breakthrough below the lower line of the daily Bollinger Band at $177.23. The bulls lost the initiative and now the risks are skewed to the downside. If $174.00 gives way, the sell-off may be extended towards $160.00, which is the lower boundary of the recent long-term range.
On the upside, keep an eye on the above-said resistance area created by SMA50 daily. It is followed by SMA100 daily on approach to $181.00. We will need to see a sustainable move above this handle for the upside to gain traction.
ETH/USD, the daily chart
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