Ethereum (ETH) has experienced a significant drop in its dominance, which has now fallen to 7.3%, a level not seen in the last five years. This decline has raised concerns about Ethereum's market position, as investor capital seems to be flowing into Bitcoin and altcoins like Solana and XRP. However, several analysts believe this may present a rare opportunity to buy ETH at a lower price, as historical trends suggest that such low dominance could signal the beginning of a market turnaround for Ethereum.
Ethereum's dominance has been in steady decline over the past two years. From a peak of around 20% in June 2023, Ethereum’s market share has significantly decreased, touching its current level of 7.3%. This drop in dominance indicates that Ethereum is losing its grip on the overall crypto market. Despite this, analysts such as Rekt Capital view this as a potential buying signal. They suggest that Ethereum's dominance is currently at a support zone, historically marking an area where Ethereum has regained market strength.
As Ethereum’s dominance slips, there has been a noticeable decline in its price as well. This situation is exacerbated by ongoing sales from Ethereum whale addresses. Recent data indicates that addresses holding between 100,000 and 1 million ETH have sold around 1.19 million ETH, valued at over $1.8 billion. These sales have contributed to both the price drop and the decreased dominance of Ethereum, causing investors to be cautious.
Despite these challenges, some analysts see Ethereum’s current market condition as a potential buying opportunity. When Ethereum’s dominance has dropped to record lows in the past, it has often been followed by a strong rebound. CryptoAnup, another analyst, stated that Ethereum dominance seems to have reached a floor, suggesting that a rebound is imminent.
Alongside Ethereum’s declining dominance, there has been a notable drop in the percentage of Ethereum supply that is currently in profit. Data from Glassnode reveals that only 40% of the ETH supply is in profit, a significant decrease from the 97.5% seen in December 2024. This indicates that many Ethereum holders are facing losses. However, some analysts view this as a positive sign for future growth. Venturefounder, a well-known market analyst, pointed out that when the percentage of ETH in profit falls below 30%, it has historically signaled a rare buying opportunity.
Furthermore, Ethereum's market value has recently dropped to align with its on-chain realized value, another indicator that could point to an impending rebound. When the market price matches the realized value, it typically marks a buying window, historically followed by strong price rallies.
Despite its current struggles, Ethereum remains the dominant platform for decentralized applications (DApps). In the first quarter of 2025, Ethereum’s DApp fee revenue surpassed $1 billion, showing the network’s continuing strength in this area. Analysts are also optimistic about Ethereum’s future with upcoming upgrades set to improve network performance.
The Pectra and Fusaka upgrades, scheduled for May and late 2025 respectively, are expected to enhance Ethereum's scalability, speed, and overall functionality. These upgrades could help Ethereum regain investor confidence and market dominance, providing further momentum for ETH’s price.
In conclusion, Ethereum’s dominance has hit a five-year low, and its price has followed suit, prompting concerns among investors. However, several indicators suggest that this could be a rare opportunity to accumulate ETH before a potential rebound. Ethereum’s continued leadership in the DApp space, coupled with upcoming network upgrades, positions the cryptocurrency for long-term growth. While Ethereum faces challenges in the short term, its historical trends and upcoming improvements suggest that this may be an ideal entry point for long-term investors.
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