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After playing second fiddle to the first six months of the year, Ethereum (ETH) price performance is now set to overtake Bitcoin (BTC) in the second half of 2023. An important on-chain indicator has revealed how investor sentiment regarding Ethereum’s price has improved in recent months. ,
ETH price registered a 58% increase in the first half of 2023, rising from $1,200 on January 1st to $1,900 on June 30th. In contrast, bitcoin delivered 83% gains, outperforming ETH and other major risk-based asset classes on TradeFi Markets.
Although negative, the crypto price performance scoreboard for H2 2023 so far reads -13% to -15% in favor of Ethereum. Could the flagship smart contract platform stage a 2nd halving comeback in the coming months?
BTC Dominance Has Diminished Significantly in the Second Half of 2023
Bitcoin Dominance (BTC.D) There has been a steady decline over the past two months as crypto investors turn their attention to the altcoin market. The TradingView chart below shows this BTC.D Reached 52% at the end of June 2023.
Since then, bitcoin has fallen by 3 percentage points to 49.28% as of August 24.
BTC.D tracks the percentage of the total global cryptocurrency market valuation that BTC makes up. The steady decline in BTC dominance indicates a shift in market sentiment and investor capital towards altcoins.
With Ethereum being the dominant altcoin, ETH price could overtake BTC in H2 if this trend continues.
Amid Crypto Market Downturn, Investors Are Eyeing Ethereum
After last week’s turbulent altcoin market crash, Ethereum is now on the verge of entering a recovery zone. According to daily Relative Strength Index (RSI) data, the ETH RSI climbed above the crucial 30 mark from below, which briefly touched 33 on August 24.
Relative Strength Index Assesses the strength and momentum of an asset’s current price movement. When the RSI rises above the 30 level from below after a significant price correction, it signals an increase in bullish momentum.
In short, the current oversold condition could lead to a bullish move for ETH in the coming days. Moreover, with Bitcoin underperforming altcoins, Ethereum price is in a prime position to overtake BTC in the coming months.
ETH Price Prediction: Resilient Consolidation Above $1,500
With Ethereum rapidly gaining investor share in H2, ETH price will display greater resilience in the face of broader market FUD.
In/out of the money around price data, which shows the entry price distribution for existing ETH holders, also reinforces this premise. It shows that 5.11 million investors bought 7.04 million ETH coins around an average price of $1,580. They could provide significant support, especially if crypto investors continue to focus on alternative markets.
But if the bears break above that resistance, Ethereum price could drop below $1,500 for the first time since March 2023.
Nevertheless, if ETH price recovers above the $2,000 range, the bulls are likely to regain control. However, 6.65 million addresses bought 6.14 million ETH at a maximum price of $1,900. If they close out their positions, the ETH price could retrace.
But if ETH price surpasses bitcoin, the bulls could immediately reclaim $2,000.
disclaimer
In line 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, but market conditions are subject to change without notice. Always do your research and seek professional advice before making any financial decisions.
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