- Ethereum’s Dragonfly Doji hints at a market bottom, mirroring past cycle reversal patterns.
- MVRV Z-Score re-enters accumulation zone, signaling strong long-term holder confidence in ETH.
- Upcoming Pectra upgrade aims to boost scalability and staking, supporting Ethereum’s recovery path.
Ethereum is showing early signs of a potential market bottom, supported by a rare Dragonfly Doji on the monthly chart and long-term support tests. Combined with improving on-chain metrics and the upcoming Pectra upgrade, analysts are watching for what could be Ethereum’s strongest rally in years.
Dragonfly Doji and Parabolic Support Mark Reversal Zone
Ethereum has printed a Dragonfly Doji candlestick on its monthly chart, a rare technical formation known for marking reversal zones. According to TradingView data, this same pattern preceded Ethereum’s breakout in 2017, when ETH surged from under $6 to over $1,400.
Chartist Merlijn the Trader shared on April 30 that Ethereum is again testing its long-term parabolic support, which has historically triggered new uptrends. “In every cycle, this zone triggers a reversal and this time is no different,” he stated on X. The current retest mirrors past cycles and comes after Ethereum dropped to $1,737 before recovering above $1,800.
On the hourly chart, Ethereum has formed a head and shoulders pattern. While the structure suggests possible short-term pressure, a move above $1,830 could break it and renew upward momentum.
On-Chain Metrics and Pectra Upgrade Add Momentum
The MVRV Z-Score, a key on-chain metric from Glassnode, has re-entered its historical accumulation zone. According to analysis prepared by Glassnode, this zone previously appeared before multimonth rallies in 2018, 2020, and 2022. This reinforces the case for a cyclical bottom.
Meanwhile, Ethereum is preparing for the Pectra upgrade on May 7, which includes 11 Ethereum Improvement Proposals. These target scalability, user experience, and staking efficiency. EIP-7702 will enable new wallet functions, while EIPs 7251 and 6110 will allow larger validator stakes and easier onboarding.
According to Bloomberg ETF analyst Eric Balchunas, staking approval for ETH ETFs “can’t hurt,” but stronger performance is needed to revive inflows. With Ethereum trading near $1,850, technical and network developments may support a shift toward recovery.
