That is a pretty big dip. Seems you have a room or placement issue. I'd start with adjusting the location of the speakers.
Cutting a peak is usually not so bad, but I agree, increasing in an attempt to smooth a big dip usually does not work. I had a crazy null like that when I had a square room. I ended up moving the listening position to mitigate it, but you could walk around the room and easily hear the spots where the nulls were.