Ethereum (ETH) concluded April with its fifth consecutive monthly decline, a pattern not witnessed since the depths of the 2018 bear market. This extended losing streak, commencing in December 2023, has understandably fueled market apprehension regarding the sustainability of any upward price movement. Despite this bearish momentum, a closer look at technical indicators suggests the possibility of a change in Ethereum’s price trajectory.
Hammer Candle Emerges Above Critical Support
Intriguingly, Ethereum’s monthly chart for April culminated in the formation of a dragonfly doji candle. In the realm of technical analysis, this particular candlestick pattern is often interpreted as a signal of potential bottoming. Characterized by a long lower wick and a small body positioned near the top of its range, the dragonfly doji indicates a significant rejection of lower price levels by buyers. Throughout April, Ethereum’s price action dipped below lows established between August and October 2023, only to stage a reversal and close above a crucial horizontal support zone.
Analyzing the Downtrend and Potential Reversal Signals
Further examination by crypto analyst CryptoBullet highlights the significance of five consecutive red monthly candles, echoing the six-month downturn experienced in 2018. The recent pullback saw Ethereum’s price descend from the $3,600 range to a key support area near $1,550. The April candle’s long lower wick, closing above this support, strongly suggests a dismissal of further downward pressure. The inset chart corroborates this, showing the candle briefly piercing a prior demand zone before a notable bounce.
$ETH printed 5th red monthly candle in a row!
— CryptoBullet (@CryptoBullet1) May 1, 2025
As I expected, April turned out to be a pivotal month – just look at that giant Hammer/Dragonfly doji candle! Swept the Aug-Oct 2023 lows and closed above the Support đź’Ş
This does look like a bottom (probably for the rest of the… https://t.co/hLhphXLulE pic.twitter.com/gNAUyGXoYu
While trading volume saw a slight increase during this decline, it remained consistent with previous accumulation phases. Although price action briefly breached mid-2023 levels, it subsequently recovered above critical market structure, with historical support from June 2022 remaining intact. As of the latest data, Ethereum is trading near the $1,820 mark.
Key Weeks Ahead for Ethereum’s Price Action
The completion of April marks a significant milestone, confirming Ethereum‘s longest run of negative monthly returns in several years. This pattern often correlates with periods of macroeconomic uncertainty or a strengthening of Bitcoin’s market dominance.
Also Read: Grayscale Snaps Up $12M in Ethereum as ETH ETFs Surge Past $6B—Is $2K Next?
The last comparable streak during the 2018 bear market was marked by diminished confidence in alternative cryptocurrencies. However, the structure of April’s candle offers a divergence from previous months, displaying a pronounced lower wick. This move potentially triggered a liquidity sweep, clearing out late long positions – a scenario that some technical analysts view as a precursor to a trend reversal.
The upcoming weeks will be pivotal in determining whether the rebound witnessed in April above key support levels can be sustained or if the overarching downtrend will persist. Market participants will be closely monitoring both price structure and volume activity for further confirmation of a new directional trend.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
