Key Takeaways:
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Ether price has printed a rare monthly Dragonfly doji candlestick, which often precedes significant ETH bull market cycles.
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Ethereum is currently retesting its long-term parabolic support zone, similar to the conditions leading up to its historic 2017 rally.
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The MVRV Z-Score has entered the accumulation zone, indicating that ETH is potentially undervalued.
Ethereum’s native token, Ether (ETH), is currently exhibiting a mix of technical and on-chain signals reminiscent of the early stages of its 2017 bull run, a cycle that produced over 25,000% gains.
Dragonfly Doji: Signals of Bullish Sentiment
Ethereum has formed a rare Dragonfly Doji candlestick on its monthly chart, the same structure noted before its historic 25,000% rally during the 2017 bull cycle. This pattern is confirmed when the price displays a long lower wick, minimal upper wick, and closes at or near its opening level.
In the case of Ethereum, the recent monthly chart candlestick indicates a sharp intra-month rejection of lower prices, signaling a potential shift in market control towards bullish investors after an extended downtrend.
A similar Dragonfly doji was observed in December 2016, preceding an explosive rise from under $6 to over $1,400 in just over a year. Government analysis in 2021 and again in 2023 displayed smaller but significant bullish moves, with gains exceeding 80% and 145%, respectively.
If bulls confirm the signal with a strong opening in May, especially above April’s high of around $1,950, Ethereum may be poised for another multi-month bullish run, initially targeting the $2,100 mark.
Retesting Long-Term Parabolic Support
Chartist Merlijn the Trader notes that Ethereum is retesting its long-term parabolic support (the highlighted green zone), which has historically acted as a catalyst for new upward trends.
In every market cycle, this particular zone has effectively triggered a reversal, a trend that appears to be continuing this time around. In early 2017, Ethereum notably bounced from this same parabolic trendline, which fueled its spectacular rise to $1,400 from a mere $6.
Related:Ethereum’s ‘capitulation’ suggests ETH price is undervalued: Fidelity report
This current retesting in 2025 mirrors that breakout setup, further hinting at a cyclical pattern that may be repeating.
On-Chain Data Signals Accumulation Sentiment
Ethereum’s MVRV Z-Score, a critical on-chain metric utilized to identify market tops and bottoms, has re-entered the historical accumulation zone (illustrated by the green band). This trend adds credence to the notion that ETH may have located its current cycle bottom.
Historically, Ethereum’s MVRV Z-Score dipped into this green zone in late 2018, March 2020, and mid-2022, with all instances coinciding with market bottoms that preceded substantial multi-month to multi-year rallies.
This article does not constitute investment advice or recommendations. Every investment and trading move involves risk, and readers are encouraged to conduct their own research when making investment decisions.
