Ethereum Makes a Comeback in H2 2023, Trumping Bitcoin
2023 has been quite a rollercoaster for Ethereum (ETH) and Bitcoin (BTC). In the first half of the year, Ethereum saw some significant growth, with its price jumping from $1,200 on January 1 to $1,900 by the end of June. However, Bitcoin outperformed Ethereum during this time, boasting an impressive 83% gain, surpassing ETH and various traditional assets known for their risk-on nature.
But the tables have turned in the second half of 2023. Ethereum is currently holding a lead of -13% to -15% over Bitcoin. This shift makes us wonder: Can Ethereum continue its impressive performance and return in the latter half of the year?
One indicator of Ethereum’s resurgence is the decline in Bitcoin Dominance (BTC.D). This metric measures the portion of the global cryptocurrency market that belongs to Bitcoin. Over the past two months, BTC.D has steadily declined, indicating a shift in investor focus toward the altcoin market. At the end of June 2023, BTC.D peaked at 52%, but as of August 24, it had dropped by three percentage points to 49.28%.
As Ethereum leads the charge in the altcoin space, it will outshine Bitcoin in the coming months if this trend persists. Despite recent rocky times in the altcoin market, Ethereum is bouncing back. Notably, the daily Relative Strength Index (RSI) data shows that the ETH RSI has climbed above the crucial 30 mark and reached 33 on August 24. The RSI helps us gauge the strength and momentum of an asset’s recent price movement. It shows emerging bullish momentum when it exceeds the 30 level after a significant price drop.
The current oversold status suggests that Ethereum might soon be gearing up for a bullish run. Furthermore, as Bitcoin loses its grip on the market to altcoins, Ethereum’s price appears poised to keep outperforming BTC in the coming months. As Ethereum gains more attention from investors in the latter half of the year, its resilience could help it weather the storms of market uncertainty.
Taking a closer look at the In/Out of Money Around Price data, which shows us where current ETH holders entered the market, reinforces this positive outlook. Around 5.11 million investors got in at an average price of $1,580 for approximately 7.04 million ETH coins. This group could provide vital support, especially if investors continue to focus on the altcoin market. However, if the bears break this support, Ethereum’s price may dip below $1,500, dropping to levels not seen since March 2023.
