Why Now is the Right Time to Invest in Ethereum

The Potential of Ethereum in a New Bull Run

Ethereum, the second largest cryptocurrency by market capitalization, could prove to be the top choice in a new cryptocurrency market bull run for several reasons.

Towards ETF Approval

One key factor that could lead to a significant increase in Ethereum’s value is the impending launch of a possible Ethereum Spot ETF.
The launch of an Ethereum Spot ETF could result in a substantial influx of capital into the cryptocurrency from the traditional market.
This surge of capital would not only increase the demand for Ethereum but could do so in a more than proportional manner compared to other cryptocurrencies like Bitcoin.

Bitcoin has already benefited from the initial bullish trend following the announcement of Bitcoin Spot ETF launches, and a similar scenario for Ethereum could spell a new growth cycle for the cryptocurrency.
The Securities and Exchange Commission (SEC) seems to be progressing with the request from asset manager ProShares.
Many are optimistic about a positive outcome, as on May 23, the SEC approved the 19b-4 filings of eight asset management companies.

An Unusual Increase in Ethereum’s Dominance

Since May 2024, there has been an unusual increase in Ethereum’s market dominance.
Market dominance refers to the percentage of a cryptocurrency’s market capitalization in relation to the total market capitalization of all cryptocurrencies.
Although this increase may be temporary and not necessarily indicate a reversal of the bearish trend that began in 2022, in the short term, it could signify a general rise in interest in Ethereum.

This rise in dominance could be interpreted as a positive signal for Ethereum, suggesting that investors are beginning to see the cryptocurrency as a more promising choice compared to other options in the cryptocurrency market.
If this trend continues, it could further strengthen Ethereum’s position as a market leader, attracting more investors and fueling a new bull run.

The Post-Halving Interest in BTC and the Push Towards Speculative Assets

Historically, after each Bitcoin halving, there is an increase in interest in more speculative cryptocurrencies.
However, once the initial halving effect subsides, investors tend to seek new profit opportunities in other assets, shifting their focus to alternative cryptocurrencies (altcoins).

Ethereum, with its wide range of decentralized applications (dApps) and smart contracts, represents one of the main speculative alternatives to Bitcoin.
During previous bull runs, a pattern emerged where, following a Bitcoin price increase, there was a significant rise in altcoin prices.
If this pattern repeats, Ethereum could greatly benefit from this trend, seeing a substantial increase in its value.