Ethereum's dominance is increasing while other altcoins continue to struggle.
ETH continues to face strong downward pressure and risks dropping below $2,000.
Since reaching a local peak of $3,700 at the beginning of January, Ethereum [ETH] has significantly decreased. After an attempt to break the downward trend a month ago, ETH faced strong resistance at $2,800 leading to a downward correction.
Despite the challenging price charts, CryptoOnchain has recorded a notable increase in ETH's dominance ratio.
Ethereum's dominance growth continues to expand.
CryptoQuant's data shows that Ethereum has dominated a significant market share from January to May 2025.
The explosion in ETH's dominance is mainly due to the sharp decline in the trading volume of other altcoins.
Source: CryptoQuant
Contrary to market expectations, Ethereum's trading volume has not contributed to the recent rally. From 2024 to 2025, ETH trading volume stabilized around 300 trillion to 490 trillion.
In contrast, altcoin trading volume peaked at 1,567.2 trillion in November 2024 but plummeted to 387.47 trillion by May 2025. The altcoin trading ratio decreased from over 1 trillion to below 400 trillion, reflecting a significant downturn.
This trend suggests that investors are withdrawing from riskier projects, with capital flowing into Ethereum as a safer option.
Source: CoinGlass
Ethereum maintains its superior position not due to its strong performance but because competing coins are weakening. ETH remains prominent while the majority of altcoins are in decline.
According to the Altcoin Season Index, the altcoin market is in decline as the index dropped from 88 to a low of 12 between December 2024 and June 2025.
Impact on ETH price volatility?
Despite Ethereum's strong dominance increase, this rally comes with many issues. Demand and on-chain activity for ETH have not kept pace with market developments.
Source: Santiment
Ethereum's NVT ratio has now surpassed 1.041, indicating that the network is being overvalued.
High NVT indicates low on-chain activity relative to market price, implying that the current ETH price is not fully supported by actual demand.
Historically, the disconnection between value and network activity often signals price peaks and initiates declines.
If this trend continues, ETH may reverse to converge with real demand, creating a highly speculative market environment.
Despite the bullish market dominance, long-term ETH investors are still at a loss.
The MVRV Long/Short spread index has remained negative for the past four months, indicating that long-term investors have not realized profits.
Source: Santiment
This negative value reflects that short-term investors have unrealized profits higher than Long Term Holders (LTH). For example, those who bought ETH from December 2024 to February 2025 are mostly at a loss.
This means ETH is facing an overvaluation while growth prospects remain unclear, as other altcoins continue to decline.
In the event of a market correction, ETH could drop below $2,000. Conversely, if the support from speculators persists, Ethereum will continue to recover and challenge the $2,500 mark.
Source: https://tintucbitcoin.com/ethereum-tang-12-eth-quanh-2k/
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