Ethereum Dominance at Five-Year Low: Analysts Suggest Buying Opportunity

Ethereum’s dominance has fallen to a five-year low of 7.3%, raising concerns about declining investor interest. Analysts like Rekt Capital see this as a potential buying opportunity, signalling historic rebounds from similar levels. However, ongoing sell-offs from ETH whales and a drop in profitable ETH supply to 40% complicate the picture. Upcoming upgrades may revitalise interest amidst these challenges.

Ethereum’s dominance (ETH.D) in the cryptocurrency market has dipped significantly, falling from 20% in June 2023 to 7.3% currently. This trend indicates a shift in investor capital towards Bitcoin and other altcoins, which has raised concerns about the attraction of ETH. Analysts believe this situation could present a unique opportunity for investors to buy ETH as its value approaches a historical support level.

Analyst Rekt Capital highlighted that ETH.D’s drop could follow previous trends where Ethereum rebounded from similar low points, suggesting a potential buy signal for investors. Furthermore, the chart shared by Rekt Capital demonstrates touchpoints at a green support zone, historically associated with market reversals. CryptoAnup echoed this sentiment, suggesting that low ETH.D levels could indicate a prime moment to accumulate before an upcoming growth cycle.

Despite optimism among some analysts, data from BeInCrypto indicates a troubling trend as significant ETH whale addresses continue to sell. In recent activity, addresses holding between 100,000 and 1 million ETH have sold approximately 1.19 million ETH, valued at over $1.8 billion, which is contributing to a decline in both the price and dominance of ETH.

Meanwhile, another emerging concern is that the percentage of ETH supply in profit has plummeted to a 4-year low, with only 40% currently profitable. This figure represents a dramatic drop from 97.5% in December 2024. Analyst Venturefounder comments that if the percentage falls below 30%, this would signal a rare buying opportunity based on historical data.

Venturefounder also noted that Ethereum’s market value has now aligned with its on-chain realized value, a point which historically indicates potential buying windows as previous price rallies have followed such conditions. Despite a 60% decline since late 2024, Ethereum remains the leading platform for Decentralised Applications (DApps), with fee revenue surpassing $1 billion in the first quarter of 2025.

Moreover, anticipated upgrades, Pectra and Fusaka, expected on the mainnet in 2025, could enhance network performance and consequently improve investor sentiment towards Ethereum.