The stalemate could work in Netanyahu's favour, allowing the long-serving prime minister to remain in power in a caretaker capacity while parties try to forge a governing coalition.
Final results could take days, and Israel's fragmented political system leaves smaller parties potential kingmakers. No single party has ever won 61 seats outright in the 120-seat Knesset, making coalitions the norm.
The vote drew record turnout as Israelis passed wartime judgment on Netanyahu in the first election since the Hamas-led attacks of October 7, 2023, and the ensuing wars in Gaza, Lebanon and Iran.
The policies of Netanyahu's right-wing coalition have been divisive at home and deepened Israel's international isolation, but he has portrayed himself as the leader with the mettle to face down Israel's foes.
Netanyahu, 77, has served as prime minister for nearly 19 of the past 30 years and has repeatedly survived political crises. He entered the election facing longstanding corruption charges, which he denies, and criticism over intelligence failures that allowed Hamas-led militants to kill 1200 people and take 251 hostages.
His main rival Gadi isenkot, 66, a hawkish former military chief who lost a son and two nephews in the Gaza war, emerged as Netanyahu's strongest challenger, stressing his security credentials while positioning himself as a centrist domestically.
Israel's fragmented system makes it difficult for an array of opponents to force out his coalition of conservative, religious and ultranationalist parties.
Netanyahu told supporters they needed to come out to vote to balance high turnout among his progressive opponents and Israelis of Arab heritage.
"You all need to stream to the polls," he said.
"This is a fateful moment."
Netanyahu's opponents have managed to wrest him from the premiership only once since 2009, and that took four inconclusive elections in two years.
He was back 18 months later.
For many of Netanyahu's opponents, the election turns on accountability for the security failures of October 7.
Opposition groups have promised to hold an inquiry, which Netanyahu's government has resisted.
"I am convinced that by the end of today, we will see a change - a new spirit for the state of Israel - that will serve as a rectification for the past three years and for that terrible day," Eisenkot said during a visit to kibbutz Nir Oz in southern Israel, targeted in the October 7 attacks.
He walked to the polls with Gadi Mozes, one of 251 people kidnapped by Hamas and taken to the Gaza Strip during the attack that killed 1200 people.
Eisenkot says Israel's response - a war which health authorities say killed more than 74,000 Palestinians - was a failure because Hamas remains in charge.
He repeated his commitment to dismantle or destroy Hamas' military and governing power in the Gaza Strip within 18 months of forming a government.
Itamar Ben-Gvir, leader of an ultranationalist party in the governing coalition, cast his vote in the Kiryat Arba settlement in the occupied West Bank.
He predicted Netanyahu would return as prime minister.
Ahmed Tibi, a candidate from an Arab party, said record turnout from Israel's Arab minority would "pave the way for an alternative government and change the grave reality".
Eisenkot has ruled out partnering with Arab parties although some possible scenarios envision him relying on them to prop up a minority government.
with DPA and AP
