Ethereum’s Market Share Crashes to 5-Year Low — But Smart Money Sees a Buy Signal

🩻 ETH Is Bleeding Market Share — But Is It a Setup for a Major Bounce?

Ethereum is down bad — but maybe not out.

ETH’s market share has plunged to just 7.3%, its lowest level in five years, while Bitcoin soars past 64% dominance. Most retail traders are panicking. But zoom out — and this could be one of the strongest buy zones since the last cycle bottom.

🧨 ETH Dominance Hits Historical Support

According to analyst Rekt Capital, ETH’s dominance has plummeted from 20% (mid-2023) to a multi-year low — but it’s now sitting on a key support zone that’s historically triggered massive rebounds.

“Will history repeat itself?” Rekt tweeted. “This could be a strong buy signal.”

Another analyst, CryptoAnup, agrees: “Looks like ETH.D has found support — a bounce might be coming!”

But not everyone is convinced.

Large wallets — holding between 100K and 1M ETH — dumped 1.19 million ETH this week, worth over $1.8B. That’s some serious whale-level cold feet.

💀 Only 40% of ETH Holders Are Still in Profit

It gets worse. According to Glassnode, only 40% of ETH holders are in the green — the lowest since the 2022 bear market. Compare that to 97% in profit during the December 2024 rally. Ouch.

But contrarian analysts like Venturefounder see this as a screaming bottom signal:

“ETH’s profit ratio is now lower than when it was $800. This looks like a bottom.”

He also pointed out that ETH’s market cap is now below its realized cap — a rare metric that usually precedes macro uptrends.

🔻 Price Action Still Looks Rough

Technically? ETH is still in the gutter.

• Failed at resistance: $1,640 and $1,680
• Dropped below key support: now flirting with $1,580
• Next danger zones: $1,550 or even $1,420
• RSI shows weak buyer momentum
• Still under the 200- and 50-day MAs

Bottom line: Short-term price action = bearish. Long-term setup = intriguing.

🏦 Exchange Reserves Are Rising Again

Over 368,000 ETH have flowed back to centralized exchanges since April — pushing reserves up to 18.95 million ETH. That’s usually code for: people are preparing to sell.

Retail is cautious. Institutions are quiet. But some insiders think ETH’s last rally lacked fundamentals — and this pullback might be the reset the market needs.

⏳ ETH at a Crossroads

This is one of those rare make-or-break moments.

ETH dominance is near historical lows. Profitability is at bear-market levels. Price is under its realized cap.

It could all fall apart.
Or it could be the ultimate contrarian setup before ETH rebounds harder than anyone expects.

Would you rather be buying Ethereum when everyone loves it at $4,000 — or when everyone hates it at $1,600?

You already know the answer.

✅ TL;DR

• 📉 Ethereum dominance just hit 7.3% — lowest since 2019
• 🐳 Whales dumped $1.8B in ETH, and only 40% of holders are in profit
• 🧠 Realized cap > market cap = historical bottom signal
• 💀 Short-term chart = ugly, but smart money sees long-term opportunity
• 🪙 This might be the last time ETH trades this low before the next breakout