Ethereum Rises On Scalability Solution
Ether, the digital currency powering the Ethereum blockchain network, is on the rise following a major announcement from Amazon Web Services. AWS has announced a series of new templates that allow users to launch an Ethereum or Hyperledger based block chain application with only a few clicks of the mouse. The difference between the two is that Ethereum based applications can be public or private while Hyperledger apps are only private.
In a blog post Amazon Chief Evangelist Jeff Barr wrote “The templates create and configure all of the AWS resources needed to get you going in a robust and scalable fashion.” the key word being scalable. Up to now the major limitation of blockchain applications have been their scalability, if AWS has really solved this problem on an enterprise level it is big news for the industry.
Ether, already on the rise, gained another 4% in Friday trading (20/4/2018) and looks like it will power higher in the near to short term at least. MACD momentum is bullish and rising up to a second peak following a recent crossover, stochastic is pointing higher following a bullish crossover high in its upper signal zone, two signs of strength traders should not ignore. Resistance is present at the $590 level but is not strong at this time. Once it is broken down a move up $674 should be expected.
The rally in Ether did not start with the AWS announcement but with a convergence of factors including regulatory woes and US tax-season. Regulatory woe sent the entire crypto market into tailspin early this year as South Korea and Japan move to regulate cryptocurrency. This woe was exacerbated by the US looming tax season as traders uncertain of Uncle Sam’s treatment of gains slowly withdrew their profits. These two factors kept prices under pressure until just recently when major downtrend line in Ether was broken.
Looking forward analysts are expecting to see a number of positive developments for the Ethereum network that will drive prices higher. Ethereum, unlike Bitcoin, allows for smart contracts and decentralized apps so other can take advantage of blockchain technologies. There is going to be an estimated 20X increase in the number of smart contracts and Dapps over the next five years, each one of which will increase the value of Ether.