Ethereum (ETH), the most actively used altcoin and smart contract platform among all altcoins according to market value, has undergone several major updates and completed the transition to Proof of Stake (PoS) in the past year. However, despite these advancements, the king of altcoins couldn’t maintain its position above the $2,000 mark. So, what do the latest data tell us?
In the first half of the year, Ethereum (ETH) outperformed Bitcoin and other leading risky asset classes in the TradFi markets in terms of price performance. ETH price witnessed a growth of 58% in H1 2023, rising from $1,200 on January 1st to $1,900 on June 30th. On the other hand, Bitcoin delivered better gains with an 83% increase. Although negative, the crypto price performance table for H2 2023 shows a value ranging from -13% to -15% in favor of Ethereum so far. Can the flagship smart contract platform make a comeback in the second half of the year?
Bitcoin Dominance (BTC.D) has been steadily declining in the past two months due to crypto investors’ focus on the altcoin market. The TradingView chart below shows that BTC.D reached its peak at 52% at the end of June 2023. Since then, Bitcoin has lost 3 points and currently stands at 49.28% as of August 24th. Dominance represents the percentage of the total global crypto market valuation created by BTC. The ongoing downward trend in BTC Dominance indicates a shift in market sentiment and investors’ capital towards altcoins.
We discussed the decline in Bitcoin’s market dominance, and if this trend continues, the altcoin king can widen the gap as it did in the first quarter. After the recent turmoil in the altcoin market, Ethereum is now on the verge of entering the recovery zone. According to the Relative Strength Index (RSI) data, ETH RSI briefly reached 33 on August 24th, surpassing the critical 30 mark from below.
In summary, the current oversold condition could potentially drive ETH to rise in the coming days. Furthermore, Bitcoin losing ground to altcoins could present an opportunity for Ethereum to widen the gap with BTC in the following months.