- The dominance of Ethereum is increasing while other altcoins continue to struggle.
- ETH still experiences strong downward pressure and risks a dip below $ 2K.
Since reaching a local highlight of $ 3.7k at the beginning of January, Ethereum [ETH] has fallen considerably. After an outbreak of this downward trend a month ago, ETH was confronted with resistance at $ 2.8k, which led to a withdrawal.
Despite these struggles on its price charts, Cryptoonchain Has noticed that ETH -Dominance has continued to rise.
Ethereum Dominance Growth continues
According to Cryptoquant, Ethereum has established a considerable part of the market on the basis of data from January to May 2025.
This increase in ETH -Dominance is mainly powered by a significant decrease in the volume of other altcoins.
Source: Cryptuquant
In contrast to the expectations of the market, the trade of Ethereum has not stimulated the recent increase. From 2024 to 2025, the trade volume of ETH remained relatively stable, ranging between 300 trillion and 490 trillion.
Altcoin trading volume, on the other hand, peaked at 1,5672 quadrillion in November 2024, but fell sharply to 387.47 trillion in May 2025. The share of Altcoin transactions fell from more than 1 quadrillion to less than 400 trillion, which reflected a significant deterioration.
This trend suggests that investors get liquidity from risky projects. Part of that capital seems to have been diverted to Ethereum, seen as a relatively safer alternative.
Source: Coinglass
That is why the dominance of Ethereum is not primarily the result of its growth, but rather the retreat of his competitors. Although ETH is not growing considerably, it remains very favorable compared to other smaller coins.
When we look at the season index of Altcoin, it shows that the total Altcoin market has decreased. This metric has fallen from 88 to 12 between December 2024 and June 2025, which indicates a weakening Altcoin market.
Is there an impact on the ETH price movement?
Although the dominance of Ethereum has risen considerably, its growth has been problematic. Since then, the demand has difficulty keeping up with the market at the chain.
Source: Santiment
At the time of the press, the NVT ratio rose from Ethereum to 1041, indicating a significant overvaluation of the network.
This means that the activity at the chain is low in relation to the price, which suggests that the current ETH prices may not be supported by the organic demand.
Historically, such decoupling – where the value of the value exceeds the actual network use – the signal market tops are often and are followed by corrections.
If this trend continues, ETH can return to better adapt to the real demand, pointing to a speculative market environment.
Despite the rising market dominance of Ethereum, long -term holders are still in red.
The MVRV-Lang/short difference also remained negative and has been the case in the last four months, which indicates persistent input for ETH investors in the long term.
Source: Santiment
A negative value here suggests that holders have a higher non-realized profit in the short term than LTHS. For example, those who acquired ETH between December 2024 and February 2025 are usually losing.
This means that, despite the growing influence, ETH does not register important steps to the benefit, while other altcoins continue to dive. In the prevailing market conditions, ETH seems to be overvalued and must return to meet the actual demand.
If a retrace comes forward, we could see ETH fall under $ 2K. However, if speculators continue to keep the market, Ethereum will continue to recover and tries to reclaim $ 2.5k.