3 Ethereum Charts Flash Signals Last Seen in 2017 Before ETH’s 25,000% Rally

Is Ethereum (ETH) gearing up for another historic bull run? Recent technical and on-chain indicators suggest that ETH may be on the verge of a massive breakout, echoing patterns last observed in 2017—when its price skyrocketed by 25,000%. Here’s a deep dive into the three critical signals flashing bullish for Ethereum.

Key Takeaways

• Dragonfly Doji Candlestick: A rare bullish reversal pattern has appeared on ETH’s monthly chart, similar to the one seen before its 2017 rally.
• Parabolic Support Retest: ETH is bouncing from a long-term parabolic trendline that previously launched its most explosive gains.
• MVRV Z-Score in Accumulation Zone: On-chain data suggests ETH is undervalued, mirroring early-stage accumulation phases from past cycles.

Dragonfly Doji Hints ETH Bulls Are Regaining Control

Ethereum’s monthly chart has printed a rare Dragonfly Doji—a candlestick pattern characterized by a long lower wick, minimal upper wick, and a close near the opening price. This formation signals strong rejection of lower prices and potential bullish momentum ahead.

Historically, this pattern has preceded major ETH rallies:

• December 2016: A Dragonfly Doji appeared before ETH surged from $6 to $1,400 (+25,000%).
• 2021 & 2023: Similar patterns led to gains of 80% and 145%, respectively.

If ETH breaks above April’s high of ~$1,950 in May, it could confirm the bullish reversal and target $2,100 as the next resistance level.

Ethereum Retests Long-Term Parabolic Support—Just Like in 2017

Chart analyst Merlijn the Trader highlights that ETH is retesting its long-term parabolic support (green zone below), a trendline that has historically acted as a springboard for massive rallies.

“In every cycle, this zone triggers a reversal—and this time is no different. Now begins what could be Ethereum’s most explosive rally yet.”

In early 2017, ETH rebounded from this same trendline before embarking on its legendary bull run. The current setup suggests history may be repeating.

On-Chain Data Points to ICO-Era Accumulation

Ethereum’s MVRV Z-Score, a key on-chain metric, has dipped into the historical accumulation zone (green band below), indicating ETH is undervalued relative to its realized price.

Past instances where the MVRV Z-Score entered this zone:

• Late 2018: Preceded a 500% rally in 2019.
• March 2020: Marked the COVID crash bottom before ETH surged 1,500%.
• Mid-2022: Led to a 100% recovery in 2023.

This metric reinforces the idea that ETH is primed for a significant upward move.

Conclusion: Is Ethereum’s Next Mega Rally Imminent?

The convergence of these three signals—Dragonfly Doji, parabolic support retest, and MVRV Z-Score accumulation—paints a compelling bullish case for Ethereum. While past performance doesn’t guarantee future results, the parallels to 2017 are undeniable.

Actionable Insight: Traders should watch for a confirmed breakout above $1,950 to validate the bullish thesis. Long-term investors may view current levels as an accumulation opportunity, given ETH’s cyclical tendencies.

Disclaimer: This article does not constitute investment advice. Always conduct your own research before making financial decisions.