Dragonfly doji hints ETH bulls are regaining control

Ether price printed a rare monthly Dragonfly doji candlestick, which is often seen before major ETH bull market cycles.

Key takeaways:

Ether price printed a rare monthly Dragonfly doji candlestick, which is often seen before major ETH bull market cycles.

ETH is retesting its long-term parabolic support zone that preceded its historic 2017 rally.

The MVRV Z-Score has entered the accumulation zone, signaling undervaluation.

Ethereum’s native token, Ether (ETH), is flashing a combination of technical and onchain signals once seen in the early stages of its 2017 bull run, a cycle that produced over 25,000% gains.

Dragonfly doji hints ETH bulls are regaining control

Ether is flashing a rare Dragonfly Doji candlestick on its monthly chart, the same structure that preceded its historic 25,000% rally during the 2017 bull cycle.

This pattern is confirmed when the price prints a long lower wick, little to no upper wick, and closes at or near its opening level.

On Ether’s monthly chart, the candlestick reflects a sharp intra-month rejection of lower prices, suggesting that bulls are beginning to regain control after an extended downtrend.

In December 2016, Ethereum formed a similar monthly Dragonfly doji before erupting from under $6 to over $1,400 in over a year. The same pattern has been seen, with smaller upside, in 2021 and 2023, where ETH gained over 80% and 145%, respectively.

If bulls confirm the signal with a strong May open, especially above April’s high of around $1,950, Ethereum could be primed for another multimonth rally, beginning with an initial run toward $2,100.

Ethereum tests long-term parabolic support, just like in 2017

Chartist Merlijn the Trader points to Ethereum retesting its long-term parabolic support, (the green zone in the chart below) that has consistently acted as a launchpad for new uptrends.

“In every cycle, this zone triggers a reversal — and this time is no different,” he wrote in his X post on April 30, adding:

In early 2017, ETH also bounced from this exact same parabolic trendline during its initial breakout phase. The trendline supported ETH throughout that year, fueling the vertical move to $1,400 from around $6.

Related: Ethereum’s ‘capitulation’ suggests ETH price is undervalued: Fidelity report

The current retest in 2025 mirrors that breakout setup, suggesting a cyclical pattern may be repeating.

Onchain data points to ICO-era-style ETH accumulation sentiment

Ethereum’s MVRV Z-Score, a key onchain metric used to identify market tops and bottoms, has re-entered the historical accumulation zone (the green band in the chart below), strengthening the argument that ETH may have found its cycle bottom.

In past cycles, Ethereum’s MVRV Z-Score dipped into this green zone in late 2018, March 2020, and mid-2022. All of these dips coincided with market bottoms and preceded multimonth to multi-year rallies.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.