Ethereum Dominance Hits 5 Year Low — Analysts Say It’s the Perfect Entry Point

Ethereum’s (ETH) dominance has steadily declined over the past two years. This suggests that investor capital is no longer prioritizing ETH. Instead, funds are likely shifting toward Bitcoin and other altcoins like Solana or XRP.

However, analysts see a major opportunity in this situation. Many believe there is now a rare chance to accumulate ETH.

Could Ethereum’s 5-year Dominance Low be an Opportunity?

According to analyst Rekt Capital, Ethereum dominance (ETH.D) dropped from 20% in June 2023 to 8% in 2025. At the time of writing, it was even lower at around 7.3%.

ETH.D represents Ethereum’s market capitalization as a percentage of the total crypto market capitalization. A decrease in ETH.D indicates that investor interest in ETH has diminished, not only in comparison to the past but also relative to other assets in the market.

Rekt Capital shared a chart showing ETH.D touching a green support zone. Historically, Ethereum tends to reverse and gain market strength from this area.

Ethereum Dominance Performance. Source: Rekt Capital

Rekt Capital questioned whether Ethereum could repeat this historical pattern and called it a strong buy signal.

“Since June 2023, Ethereum Dominance has dropped from 20% to 8%. Historically, Ethereum Dominance has reversed from this green area to become more market-dominant. Can Ethereum repeat history?,” Rekt Capital said.

Another analyst, CryptoAnup, also saw the drop as a can’t-miss opportunity. He pointed out that when ETH.D hits a record low, it often marks a good time to accumulate ETH before a new growth cycle begins.

“ETH Dominance seems to have found a floor—rebound soon!,” CryptoAnup predicted.

However, recent analysis from BeInCrypto revealed that ETH whale addresses are still actively selling. This week, addresses holding between 100,000 and 1 million ETH sold around 1.19 million ETH, worth over $1.8 billion. These sales are worsening the decline of ETH’s price and dominance.

ETH Supply in Profit Drops to Lowest Level in 4 Years

Beyond the drop in dominance, data from Glassnode shows that the percentage of ETH supply in profit has also fallen to a 4-year low.

ETH Percent Supply in Profit. Source: Glassnode

Only 40% of the ETH supply is currently profitable—a significant decrease from 97.5% in early December 2024. Analyst Venturefounder said that if this metric drops below 30%, it would signal a rare buying opportunity that has only appeared a few times in the past decade.

“ETH percentage supply in profit (40%) now lower than the last bear market cycle bottom (42%) when ETH was trading at $800. Looking on-chain, this is already signal to deploy,” Venturefounder said.

Venturefounder highlighted another important metric: Ethereum’s current market value has fallen to match its on-chain realized value. The Realized Value reflects the average price at which all ETH tokens last moved. When the market price drops to this level, it often signals a rare buying window. Historically, such moments tend to precede strong price rallies.

Ethereum MVRV. Source: Glassnode

“Looking at this ETH long term chart. Does it make you want to buy Ethereum or sell Ethereum? Be honest,” Venturefounder commented.

Despite ETH’s 60% decline from its late-2024 high, a recent report from BeInCrypto confirms Ethereum remains the top DApp platform. DApp fee revenue surpassed $1 billion in Q1 2025.

Additionally, the upcoming Pectra and Fusaka upgrades are expected to launch on the mainnet in May 2025 and late 2025, respectively. These upgrades could significantly improve network performance and boost investor sentiment.

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