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Israel is not an ethnostate, nor is it historically fascist, though it has been sliding in that direction under Netanyahu.
73.2% (about 7,208,000 people) are Jews, including about 503,000 living outside the self-defined borders of the State of Israel in the West Bank 21.1% (around 2,080,000 people) are Israeli citizens classified as Arab, some identifying as Palestinian, and including Druze, Circassians, all other Muslims, Christian Arabs, Armenians (which Israel considers "Arab")[2] An additional 5.7% (roughly 554,000 people) are classified as "others". This diverse group comprises those with Jewish ancestry but not recognized as Jewish by religious law, non-Jewish family members of Jewish immigrants, Christians other than Arabs and Armenians, and residents without a distinct ethnic or religious categorization.[2][1]
According to a 2011 Government Social Survey of Israelis over 20 years of age, 49% report Hebrew as their native language, Arabic 18%, Russian 15%, Yiddish 2%, French 2%, English 2%,[3] Spanish 1.6%, and 10% other languages (including Romanian, and Amharic, which were not offered as answers by the survey). This study also noted that 90% of Israeli Jews and over 60% of Israeli Arabs have a good understanding of Hebrew.
Pretty poor numbers for an ethnostate. And while I have little doubt there is systemic racism and discrimination present in the society at large, the law provides all citizens of Israel with the same rights to vote, own business, etc etc.
Worth noting, it is likely a long-term goal of Israel's far right to change them into an ethnostate. But that does not make them one today.