Ethereum (ETH) Price May Be Nearing the End of the Capitulation, According to Crypto Analyst Ali Martinez

The Ethereum price may be nearing the end of the capitulation, according to famous crypto analyst Ali Martinez.

Famous crypto analyst Ali Martinez believes that the Ethereum (ETH) price may be nearing the end of the capitulation, according to his latest analysis.

In a recent X post, Martinez highlighted that Ethereum’s Entity-Adjusted Dormancy Flow has dropped below one million. This metric, which measures the relative value of coins being held versus the rate at which they are being spent, has been linked to Ethereum bottoms in the past.

“This historically indicates a macro bottom zone, meaning $ETH might be undervalued and long-term holders are less inclined to sell,” Martinez explained.

The analyst noted that this metric shows low sentiment and possible accumulation by “smart money”. He added, “Capitulation may have occurred, smart money might be accumulating.”

This Ethereum analysis has sparked cautious optimism among investors, as similar patterns have led to recovery in the past.

#Ethereum Entity-Adjusted Dormancy Flow just dropped below 1 million.

This historically indicates a macro bottom zone, meaning $ETH might be undervalued and long-term holders are less inclined to sell. It also suggests:

• Sentiment is low

• Capitulation may have occurred

• Smart money might be... pic.twitter.com/8mFc3Qdxoy

— Ali Martinez (@ali_martinez) April 11, 2025

The Entity-Adjusted Dormancy Flow compares Ethereum’s market cap to the dormancy value, adjusted for unique entities rather than raw addresses. This metric is used to identify periods of price extrema, which can be either a bottom or a top.

Meanwhile, Ethereum’s price has dropped over 55% in the past year and is currently trading around $1,557. Despite this prolonged decline, analysts are finally beginning to see signs of an Ethereum price bottom.

CryptoQuant collaborator theKriptolik pointed out that ETH has fallen below its Actual Price, a metric showing the average acquisition cost across the blockchain.

However, such drops in prices also signal strategic accumulation opportunities for long-term holders.

"After a year of downward movement, #ETH has fallen below its Actual Price, suggesting a capitulation phase. This aligns with the low Entity-Adjusted Dormancy Flow, indicating potential accumulation by smart money and a macro bottom zone."

This suggests that the cryptocurrency might be undervalued, and long-term holders are less likely to sell their coins.

Martinez issued a warning that ETH could dip as low as $1,200 if selling pressure persists.

Another analyst, NotWojak, suggested that ETH might be on the verge of a breakout. He stated that this breakout may take ETH up to $1,835.

With Ethereum’s on-chain data suggesting possible recovery and analysts divided on its short-term growth path, it remains to be seen whether the second-largest cryptocurrency will manage to break out of its current slump.