Ethereum (ETH) rebounded sharply over the past 24 hours, briefly advancing to almost $2,400 before momentum faded at a key resistance area, leaving traders focused on whether a daily close above $2,375 can unlock a push toward $2,550 as one analyst suggested. The move unfolded alongside broader crypto market strength but stalled after reports that Iran had hit a US Navy vessel, with ETH last changing hands around $2,350 for a 1% daily gain.

Market Movement

The session opened with firm buying interest, carrying ETH up to the upper boundary of a trading channel near $2,375 earlier today (May 4). That level capped the advance, and prices slipped back in recent hours, preserving only a modest daily increase. The intraday pattern underscored the market’s sensitivity to overhead supply as participants gauged whether the latest upswing represented a continuation attempt or another test of resistance within a well-defined range.

Analyst Ali Martinez highlighted the importance of the $2,375 area, describing it as a “major area of resistance to watch” after ETH tagged the channel top. He noted that prior encounters with this threshold have often been followed by rejection and a retreat toward the lower boundary of the formation, which he placed near $2,210. In his assessment, a failure to clear the barrier could again invite a pullback to that zone of support.

Martinez also set out an alternative path. If ETH can establish a daily close above $2,375, he argued, the market could target a 7% advance toward the next structural high at $2,550. That conditional outlook positioned the day’s close as a pivotal reference point for trend confirmation.

Key Drivers

The initial upswing to almost $2,400 lost steam after reports that Iran had hit a US Navy vessel, an update that coincided with the market’s hesitation near resistance. While ETH retained a portion of its gains, the episode emphasized how quickly external headlines can influence short-term sentiment when prices approach technically significant levels.

At the same time, the tape action conformed to the technical roadmap traders have been monitoring for weeks: a price channel with repeated tests of overhead resistance and subsequent retreats. Within that framework, the ability—or failure—to secure a close through $2,375 took on added importance, setting the stage for either a continuation attempt toward $2,550 or another rotation lower within the range.

Other technical observers echoed the focus on upside triggers and nearby supports. Market watcher CRYPTOWZRD suggested that a breakout beyond $2,400 could offer a “better long location,” while identifying $2,270 as support. CryptoMark, for their part, said ETH had just finished coiling into a “perfect Cup and Handle formation,” adding that the price was “just a few points away” from testing a breakout that could carry to $2,850—described as the highest level since January this year.

Investor Reaction

Large holders have been active in recent days, a backdrop that some traders interpret as constructive for near-term price dynamics. As reported earlier, whales purchased 140,000 ETH, valued at almost $330 million, over a four-day span. Such accumulation is often viewed as supportive because it can ease immediate selling pressure, signal strong conviction among bigger players, and prompt smaller participants to add exposure.

Flows into spot ETH ETFs have also shifted tone. These products attracted over $350 million in April, breaking a five-month stretch of net outflows. May opened with a strong inflow candle as well, though whether that pace persists through the rest of the month remains an open question. For many market participants, the interaction between on-chain accumulation and listed product demand has become an important barometer for gauging depth of interest and potential follow-through on directional moves.

Together, those investor signals helped frame the day’s push toward resistance. The renewed appetite from larger wallets and the improvement in ETF flows added context to the rebound, even as the market’s inability—so far—to close above $2,375 kept the near-term picture finely balanced between breakout and range-bound outcomes.

Broader Impact

Seasonality is another element traders are watching as May gets underway. Historically, the current month has been a strong period for the second-largest cryptocurrency, with only three red finishes on record. Notably, two of those occurred in 2018 and 2022 during bear-market years, a reminder that seasonal tendencies can be overridden by trend and macro conditions. With ETH hovering below resistance and investors weighing improving flows against headline risk, the market again finds itself at a crossroads.

The technical roadmap provides clear markers for that decision. On the upside, a daily close through $2,375 would align with the scenario outlined by Martinez, opening room to test $2,550 as the next structural high. A stronger breakout, per CryptoMark’s “Cup and Handle” view, could extend the move toward $2,850 if momentum builds. Conversely, failure to clear resistance raises the risk of rotation back to nearby supports, including $2,270 and potentially the channel’s lower boundary around $2,210, as referenced by the analysts.

For short-term participants, the session’s profile distilled into a handful of levels and signals: resistance clustered around $2,375–$2,400, nearby supports at $2,270 and $2,210, and a watchful eye on whether ETF inflows and whale accumulation continue to buttress dips. For longer-horizon investors, the improving flow picture and historically favorable month may be encouraging, although the market’s response to external developments will likely remain a key determinant of follow-through.

Market Movement: What to Watch Next

As of this writing, ETH trades near $2,350 with a 1% daily increase, leaving the closing print in focus. A confirmed close above $2,375 would strengthen the case for a move toward $2,550, while hesitation beneath that level would keep the range intact and elevate the odds of retesting support levels. Against that backdrop, positioning by large investors, the trajectory of spot ETH ETF flows, and the market’s sensitivity to headlines will continue to shape price discovery as May progresses.

In short, Ethereum’s latest rebound has brought the market back to a familiar inflection point. The interplay between a well-watched resistance band, active whale participation, and improving ETF demand defines the near-term setup, with the next decisive move likely to hinge on whether buyers can finally claim a daily close above $2,375—or whether another rejection resets the range toward support.