Recent analysis of Ethereum shows a number of technical and onchain signals pointing to a possible recovery of its value after a significant downturn.
Dragonfly Doji and ETH Recovery
Ethereum has printed a rare Dragonfly Doji candlestick on its monthly chart, a pattern seen prior to its historic rally in 2017. This pattern indicates a sharp rejection of lower prices, suggesting buyers may be regaining control.
Testing Long-Term Parabolic Support
Ethereum is also retesting its long-term parabolic support, which has historically served as a launchpad for new uptrends. Analyst Merlijn the Trader emphasizes that a breakout from this zone could signal a substantial price spike.
Onchain Data Indicates ETH Accumulation
The MVRV Z-Score for Ethereum has re-entered the accumulation zone, strengthening the argument that ETH may have found its cycle bottom. This metric previously indicated market bottoms in previous cycles.
The current technical and onchain data for Ethereum may indicate the beginning of a new rally after a prolonged downturn, warranting close observation of market movements.
