After playing second fiddle in the first six months of the year, Ethereum (ETH) price action has now overtaken Bitcoin (BTC) in the second half of 2023. A key on-chain indicator has shown how investor sentiment towards Ethereum price has been improving over the past few months.
ETH price saw a 58% growth in the first half of 2023, climbing from $1,200 on January 1st to $1,900 on June 30th. In contrast, Bitcoin posted an 83% gain, outperforming ETH and other key risk-on asset classes in the TradFi markets.
Albeit negative, the value of the crypto price performance scoreboard for the second half of 2023 so far is -13% to -15% in favor of Ethereum. Can the flagship smart contract platform sustain a comeback in the second half of the year in the coming months?
BTC dominance has eased significantly in the second half of 2023
Bitcoin (BTC.D) dominance has steadily declined over the past two months as crypto investors shifted their focus to the altcoin market. The TradingView chart below shows that BTC.D peaked at 52% in late June 2023.
Since then, Bitcoin has lost 3 percentage points and stands at 49.28% on Aug. 24.
Ethereum (ETH) Overtakes Bitcoin (BTC) | Bitcoin Dominance (BTC.D), August 2023, Source: TradingView
BTC.D tracks the percentage of the total global cryptocurrency market valuation that BTC accounts for. A sustained downtrend in BTC dominance indicates a shift in market sentiment and investor capital toward altcoins.
With Ethereum being the flagship altcoin, ETH price could continue to outpace BTC price in the second half of the year if this trend continues.
Amid the crypto market downturn, investors are eyeing Ethereum
After last week’s tumultuous crash in the altcoin market, Ethereum is now about to enter the recovery zone. According to daily Relative Strength Index (RSI) data, ETH’s RSI broke above the critical 30 level from below and briefly touched the 33 level on Aug 24.
The Relative Strength Index assesses the strength and momentum of an asset’s current price movement. If the RSI surges above the 30 level after a significant price correction from below, it will indicate increasing bullish momentum.
To sum up, the current oversold status could see ETH starting a bullish trend reversal in the coming days. Additionally, as Bitcoin loses ground against altcoins, Ethereum price is in a prime position to continue to outperform BTC in the coming months.
ETH Price Prediction: Resilient consolidation above $1,500
As Ethereum quickly gains investor attention in H2, ETH price is likely to be more resilient to withstand widespread market FUD.
The In/Out of Money Around Price data, which depicts the entry price distribution of the current ETH holders, also underlines this premise. It shows that 5.11 million investors bought 7.04 million ETH coins at an average price of $1,580. They could provide significant support, especially if crypto investors continue to focus on legacy markets.
But if the bears break this resistance level, Ethereum’s price could plunge below $1,500 for the first time since March 2023.
Still, the bulls could take control if ETH price surges back above $2,000. Even though 6.65 million addresses bought 6.14 million ETH at the peak price of $1,900. If they close their positions, ETH price could decline.
But if ETH price surpasses Bitcoin, the bulls could immediately reclaim $2,000.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, however, market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions.
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