The cryptocurrency market staged a notable rebound over the past 24 hours as Ethereum (ETH) briefly climbed toward $2,400, a move that coincided with geopolitical reports claiming Iran had struck a U.S. Navy vessel. The advance was short-lived, however. Bears pushed the price lower in recent hours, and several analysts warn a further pullback could be possible.
What’s next?
At the time of writing, ETH is trading near $2,350, up roughly 1% on the day. Well-known analyst Ali Martinez observed that ETH earlier reached the upper boundary of a key channel at $2,375, labeling that zone a “major area of resistance to watch.” Historically, Martinez noted, this level has often produced rejections that sent ETH back toward the channel’s lower edge for support.
“Failure to clear this barrier could trigger a retracement to the channel’s lower boundary, currently near $2,210,” Martinez wrote.
Martinez also outlined a bullish alternative: a daily close above $2,375 could fuel further upside, potentially producing a roughly 7% rally toward the next structural high at $2,550.
Other market commentators have similar observations. CRYPTOWZRD suggested that breaking beyond $2,400 would present a “better long location,” while identifying $2,270 as a key support area. CryptoMark argued that ETH appears to have completed a textbook cup-and-handle consolidation and is “just a few points away” from a breakout that could propel the price toward $2,850 — a level not seen since January.
Whales and inflows
Large investors have been especially active, supporting the case for further upside. According to reports, whale wallets accumulated roughly 140,000 ETH — valued at nearly $330 million — within a four-day span. Heavy accumulation by large holders is typically viewed as bullish because it reduces immediate selling pressure, signals conviction from institutional or high-net-worth participants, and can encourage additional retail buying.
Spot ETH exchange-traded funds (ETFs) are another important variable. These funds attracted more than $350 million in April, breaking a five-month period of net outflows. May opened with a substantial inflow as well, and whether that institutional demand persists over the coming weeks remains a key question for near-term price direction.
Seasonality also favors ETH this month: historically, it has tended to be a strong period for the second-largest cryptocurrency, with only three monthly declines on record. Two of those declines happened during deep bear markets (2018 and 2022), underscoring that ETH now sits at an important juncture between renewed strength and potential retracement.