Ethereum Gears Up for 2025 Rally as On-Chain and Technical Signals Align

Ethereum’s native token Ether (ETH) is displaying a mix of rare technical patterns and on-chain signals that suggest a potential major rally in 2025—possibly reminiscent of the 2017 bull cycle where ETH gained over 25,000%.

The most notable technical indicator is the monthly Dragonfly Doji candle, a pattern that historically marks the end of downtrends and the return of bullish momentum. The last time ETH printed this candle was in December 2016, right before it surged from under $6 to over $1,400.

In parallel, ETH is currently testing its long-term parabolic support zone, which has historically triggered upward reversals in every cycle. According to analyst Merlijn the Trader, this green zone has repeatedly marked the start of new rallies.

Supporting the technical view is a key on-chain metric, the MVRV Z-Score, which has entered its historical accumulation zone. This score indicates that ETH is undervalued and suggests that long-term holders are accumulating again—just as seen before previous market bottoms in 2018, 2020, and 2022.

As Ethereum revisits both chart and on-chain conditions similar to past bull markets, analysts believe the asset may be on the verge of its most explosive rally yet.