#ETH

Ethereum’s Technical Indicators Signal Potential Bullish Momentum

Ethereum (ETH) is showing promising signs of a potential market rally, with technical and on-chain indicators resembling patterns from its historic 2017 bull run. According to Cointelegraph, one of the most notable signals is the appearance of a Dragonfly Doji candlestick on Ethereum’s monthly chart — a formation traditionally associated with bullish reversals. This pattern, featuring a long lower wick and a close near the opening price, suggests strong buying pressure after initial declines.

Historically, this pattern proved significant. In December 2016, a similar candlestick preceded Ethereum’s surge from under $6 to over $1,400 within a year. The same pattern appeared again in 2021 and 2023, triggering rallies of 80% and 145% respectively. If Ethereum opens strongly in May 2025, especially above the crucial $1,950 level, analysts believe it could mark the start of another sustained upward move, initially targeting $2,100.

Additionally, Ethereum is retesting a long-term parabolic support zone, a trendline that has historically acted as a springboard for major uptrends. Chartist Merlijn the Trader highlights its consistency in previous cycles, notably during Ethereum’s 2017 breakout. The current setup closely mirrors those conditions, reinforcing bullish expectations.

On-chain data further strengthens the outlook. Ethereum’s MVRV Z-Score, which gauges market tops and bottoms, has re-entered its historical accumulation zone. In past cycles — notably in late 2018, March 2020, and mid-2022 — similar dips marked market bottoms and preceded significant rallies.

While these indicators point to a potential bullish reversal, it’s important to approach the market cautiously. Cryptocurrency remains highly volatile, and individuals should conduct their own research before making investment decisions.

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