After playing second fiddle in the first six months of the year, Ethereum (ETH) price performance has now overtaken Bitcoin (BTC) in H2 2023. A vital on-chain indicator has revealed how investor sentiment surrounding the Ethereum price has improved in recent months.
ETH price delivered a 58% growth performance in H1 2023, increasing from $1,200 on January 1 to $1,900 on June 30. In contrast, Bitcoin delivered 83% gains, superior to ETH and other prominent risk-on asset classes in the TradFi markets.
Albeit negative, the crypto price performance scoreboard for H2 2023 so far reads -13% to -15% in favor of Ethereum. Can the flagship smart contract platform hold out for a second-half comeback in the coming months?
BTC Dominance has Waned Considerably in H2 2023
Bitcoin Dominance (BTC.D) has steadily declined over the past two months as crypto investors switched focus to the altcoin market. The TradingView chart below shows that BTC.D peaked at 52% at the end of June 2023.
Since then, Bitcoin has lost 3 percentage points to graze 49.28% as of August 24.
BTC.D tracks the percentage of the total global cryptocurrency market valuation that BTC makes up. A persistent downtrend in BTC Dominance indicates a shift in market sentiment and investors’ capital toward altcoins.
With Ethereum being the flagship altcoin, ETH price could further outpace BTC in H2 if this trend persists.
Amid Crypto Market Downturn, Investors View Ethereum
Following last week’s turbulent altcoin market crash, Ethereum is now on the brink of entering the recovery zone. According to the daily Relative Strength Index (RSI) data, ETH RSI cornered above the critical 30 mark from below, briefly hitting 33 on Aug 24.
The Relative Strength Index assesses the strength and momentum of an asset’s current price movement. When the RSI corners above the 30 level from below after a significant price correction, it suggests growing bullish momentum.
In summary, the current oversold status could see ETH enter a bullish reversal in the coming days. Also, Bitcoin losing ground to altcoins puts Ethereum price in a prime position to further outpace BTC in the coming months.
ETH Price Prediction: Resilient Consolidation Above $1,500
With Ethereum fast gaining investors’ mindshare in H2, ETH price will likely exhibit more resilience 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 emphasizes this premise. It depicts that 5.11 million investors had bought 7.04 million ETH coins around the average price of $1,580. They could offer significant support, especially if the crypto investors continue to focus on the alt markets.
But if the bears push past that resistance level, Ethereum’s price could drop below $1,500 for the first time since March 2023.
Yet, the bulls could seize control if the ETH price rebounds above the $2,000 range. Although 6.65 million addresses had bought 6.14 million ETH at the maximum price of $1,900. If they close their positions, the ETH price could retrace.
But if the ETH price overtakes Bitcoin, the bulls could promptly reclaim $2,000.
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