Ethereum (ETH) is showing signs of a potential breakout that mirrors the conditions preceding its legendary 2017 bull run. Three powerful indicators—technical and on-chain—are now aligning, hinting at a possible explosive move ahead.
1. Dragonfly Doji on the Monthly Chart
A rare and significant pattern, the Dragonfly Doji, has appeared on Ethereum’s monthly candle. This formation typically indicates strong rejection of downside pressure and a possible bullish reversal. Historically, ETH printed this same pattern before major uptrends—including the start of the 2017 rally and smaller surges in 2021 and 2023.
If Ethereum opens May above April’s high around $1,950, it could confirm bullish momentum, potentially pushing the price to test the $2,100 resistance and beyond.
2. Retesting a Historic Parabolic Trendline
Technical analysts have noted Ethereum is revisiting a long-term parabolic support level. This trendline has historically acted as a launchpad for rallies. In early 2017, ETH bounced off this same curve, igniting its surge from under $10 to over $1,400 within a year.
The current retest of this zone suggests that history might be repeating, providing technical validation for long-term investors.
3. MVRV Z-Score Signals Undervaluation
On-chain data supports the bullish case. The MVRV Z-Score—a metric that compares market value to realized value—has reentered its “accumulation zone.” This level has reliably marked cycle bottoms in previous bear markets, including late 2018, March 2020, and mid-2022.
This metric implies Ethereum may be undervalued and in a prime position for accumulation before a significant price movement.
What’s Next for Ethereum?
While these indicators are promising, confirmation is essential. A sustained push above key resistance levels in May could set the stage for a multi-month rally. However, traders should remain cautious and monitor macroeconomic trends and broader crypto market movements.
Ethereum’s current setup echoes the early stages of its most explosive bull run. If the past is any guide, ETH might be gearing up for something big—but as always, smart investing begins with sound research and risk management.