Ethereum (ETH) is showing signs of a potential breakout, with both technical patterns and on-chain indicators echoing the early stages of its legendary 2017 bull run, according to Cointelegraph.

$ETH

One of the most notable signals? A rare Dragonfly Doji candlestick formation on Ethereum’s monthly chart — a pattern historically associated with bullish reversals. This setup, characterized by a long lower wick and a close near the opening price, signals a strong rejection of lower prices and a possible shift in control back to the bulls.

This isn’t the first time Ethereum has flashed this signal:

In December 2016, a similar Dragonfly Doji preceded a rally from under $6 to over $1,400 in just 12 months.

The pattern reappeared in 2021 and 2023, leading to gains of 80% and 145%, respectively.

If ETH maintains momentum and breaks above April’s high of ~$1,950 with a strong May open, the first target could be $2,100 — setting the stage for a larger trend reversal.

More Fuel for the Fire: Retesting Parabolic Support

Technical analyst Merlijn the Trader highlights another bullish sign: Ethereum is currently retesting its long-term parabolic support zone — the same support level that marked key breakouts in past cycles. This zone has historically acted as a springboard for massive rallies, including the $6 to $1,400 move in 2017.

This 2025 retest mirrors that early-stage structure, increasing the likelihood of a cycle repeat — or at least a significant leg higher.

On-Chain Confirmation: MVRV Z-Score Re-Enters Accumulation Zone

Supporting the technical picture, Ethereum’s MVRV Z-Score — a key metric for spotting cycle tops and bottoms — has re-entered the accumulation zone. Historically, when this score dipped into the zone (late 2018, March 2020, mid-2022), it signaled macro bottoms and preceded sharp price recoveries.

Key Takeaways:

Dragonfly Doji on the monthly chart suggests a bullish reversal.

ETH is bouncing off a historically critical parabolic support zone.

MVRV Z-Score re-entry points to a long-term accumulation phase.

The Setup Is There — The Follow-Through Is What Matters

While nothing is guaranteed in markets, the convergence of historical patterns, technical support, and on-chain metrics strengthens the bullish case for Ethereum in the weeks ahead.

As always, this post is not investment advice — just analysis rooted in history, data, and pattern recognition.