Eels are smooth-skinned, snakelike, predatory fish. In many parts of the world, but especially in China, the phallic shape of the eel is related to sexuality. Because eels live in water, which symbolizes the subconscious mind, dreaming of an eel shows that powerful, hidden sexual impulses are near the surface of your mind. Frequently, these express themselves as anxiety and lack of confidence, especially concerning sexual matters. It's a sign of good luck ahead if you manage to catch and hold on to an eel in your dream.