Ethereum's Dominance in the Crypto Market Has Fallen to Its Lowest Level in 5 Years

Ethereum's dominance in the crypto market has fallen to its lowest level in 5 years, raising questions but also optimism among some analysts.

Ethereum’s dominance in the cryptocurrency market has fallen to its lowest level in five years, sparking questions among analysts.

As several technical indicators reached critical thresholds, some analysts highlighted a potential entry point for investors.

Several crypto traders noted that a bounce could be expected if Ethereum’s dominance reaches the “green zone” of support.

suggesting an opportunity for accumulation.

“When $ETH Dom hits a floor, it’s usually the beginning of a new bull market cycle,” remarked CryptoAnup.

However, crypto whale behavior continues to raise concerns.

This week alone, wallets holding 100,000 to 1 million Ethereum sold 1.19 million units, valued at approximately $1.8 billion.

Additionally, only 40% of the circulating ETH supply is currently in profit, reaching a 4-year low.

According to Venturefounder, this could be a strong buying signal.

“One of the rarest (macro) buying signals of the past 10+ years is triggered when the % of $BTC in profit drops below the 30% level (which has never happened yet!)”

Another indicator to watch is when Ethereum’s price meets its realized value, which is the average price at which each ETH was last transferred.

Historically, this convergence has often been followed by a significant recovery.

Despite a 60% decline since its late 2024 peak, Ethereum remains the leading decentralized application (DApp) platform, generating over a billion dollars in revenue in Q1 2025.

Furthermore, the upcoming Pectra (May 2025) and Fusaka (end 2025) upgrades are expected to bring major technical improvements to the network.

With several technical indicators reaching critical thresholds and several analysts highlighting a potential entry point for investors, it remains to be seen how Ethereum’s dominance will unfold in the coming months.