Based on various factors that affect crypto prices, most analysts are bullish about cryptos. If we consider a time frame 6 months or more to say, the end of 2024, it is almost certain that BTC, ETH and many Alt coins will be higher than their present prices.

ETH in particular is expected to outperform the general crypto market so now is a good time to buy ETH.

However this does not mean that the price of ETH cannot fall below its current value.

BTC followed by ETH are the biggest and most stable in price of cryptos. Even BTC can experience several corrections of between 20 to 30% within a bull cycle.

Crypto prices has moved in cycles of roughly 4 years linked to BTC halving. Based on these cycles which have been very consistent in their pattern, 2024 and 2025 are bullish years. After a strong 1st quarter for 2024, the current correction is just one of several corrections that will take place in the bull cycle. During such corrections BTC lose 20 to 30% while Alt coins lose 40 to more than 80%. In the present correction, many Alt coins have lost between 40 to 85%. The correction for BTC and ETH has been much lower at around 15 to 20%.

Have we reached the bottom? Maybe but quite likely not yet. If we have not, BTC and ETH will lose less than other cryptos. As such they are good choices for those who want to benefit from present low prices. At the same time they have lower potential losses.

In the past bull cycles, BTC leads they way followed by ETH. After that money flows to big cap Alts and then small caps and then meme coins.

In the current cycle ETH and big/small caps are still lagging BTC. Therefore, ETH has the potential to outperform BTC and other Alts when prices start the next leg of the bull cycle.

The BTC spot ETF approval is one of the factors that contributed to the present bull cycle. When BTC spot ETF's started trading, BTC fell for some time. This was because of outflows from Greyscale which had BTC futures ETF before the spot ETF.

The same pattern could very well happen with ETH. Greyscale currently has ETH futures ETF and selling by the current holders of the futures ETF will dampen ETH price in the early days of spot ETH ETF trading. Spot ETH ETF's are expected to start trading in early July 2024.

Although the approval of ETH ETF's is bullish, it is likely for ETH to drop for a while as a result of such selling by Greyscale. Thus, it is advisable for those who want to buy ETH to not jump in fully but buy progressively and DCA. Starting to buy now will lower the average cost as the early purchases will be cheaper than later purchases as ETH price rise. On the other hand, should ETH price fall temporarily, the subsequent purchases at lower prices will reduce average cost.🦋

Besides the above reasons to start buying ETH now, there are several developments that are positive for ETH. The SEC has just dropped their case against ETH. Having an ongoing case by the SEC would have dampened the bullish prospects of ETH.

Take the case of XRP. XRP was once the second largest crypto next to BTC. The multi year SEC case against XRP which is yet to be fully resolved has greatly hampered XRP. XRP failed to take of during the last bull cycle and is also disappointing in the current cycle. Its current price of around 50 cents is about 15% of its all time high of $3.84 in 2018 set 2 bull cycles ago. The dropping of SEC's case against ETH is very bullish for ETH. 🦋

The coming USA elections in November is bullish for cryptos in several ways.

Candidates attitude towards cryptos have become an election issue. Republican Trump who was against cryptos in the 2020 election is pro crypto for this election and has used the Democrat hostility towards cryptos in his campaigning. Such hostility can cause the Democrats to lose votes so they have softened in their stance.

Perhaps this softening has a part to deal with the unexpected approval in May of ETH ETF and the very recent dropping of the case by SEC. Such softening may lead to the final resolution of the SEC's case against XRP.

The whole regulatory framework for cryptos could change and with cryptos being considered as commodities instead of securities. This will clear the pathway for more spot ETF'S such as Solana and XRP.

Another reason why the coming elections is bullish is that governments try to boost the economy and markets prior to elections. This is to create a wealth effect to increase satisfaction of voters.

We can expect to have an interest rate cut before the November election. Such an interest rate cut will be bullish for both the stock market and cryptos. 🦋

The supply compared to demand of goods affect prices. The supply of ETF is at multi year lows while the demand for ETF is high and will increase further. Why is this happening?

Strong holders of ETH are positive about ETH and will hold on to what they have. Having no intention to sell ETH in the near future they have taken out their ETH from exchanges and keep then in their own cold wallets. So the amount of ETH that is available on exchanges has fallen.

The strong holders will not be easily shaken by FUD (Fear, Uncertainty, Doubts) and so the limit the downside when there is FUD and corrections.

Another factor for the low amount of ETH is that ETH is deflationary. As the usage of ETH increase, the amount that is burnt also increase.

Institutional funds flowing into ETH will increase the demand for ETH. The increase in ETH price will fuel further increase in demand as FOMO and herd mentality drive people to ETH. The increase in price of ETH as a result of money inflows into ETH is likely to be more pronounced than that for BTC. The market capitalization for ETH is much smaller than that of BTC. This make the proportional effect of inflows into ETH bigger than that for BTC following the BTC ETF'S. 🦋

Another factor for ETH is that it is a likely protocol that will be used for tokenization of assets. ETH is already the leader in being used for smart contracts and Defi. Compared to BTC which is valued as a store of value, ETH is widely used for smart contracts and in apps such as Defi. Such usage and for new apps such as tokenization of assets is likely to increase as ETH Layer 2's take advantage of upgrades in ETH. The Dencun upgrade and improvements in sharding technology has lowered the gas fees for ETH Layer 2's. The growth and development of ETH Layer 2's will make ETH more widely used and is bullish for ETH. With so many bullish factors for ETH, now is certainly a good time to buy ETH. However as mentioned above, the price of ETH will fluctuate and have sizeable corrections. So it is advisable to DCA and buy progressively.