Ethereum is once again testing the critical $2,400 resistance zone after rebounding strongly over the past 24 hours, with several technical and on-chain indicators suggesting a breakout could be near.
The world’s second-largest cryptocurrency climbed around 3.5% to reach an intraday high of $2,393 on May 4 before facing another rejection near the $2,400 level. At the time of writing, ETH has slightly pulled back and is trading near $2,370.
While Ethereum has attempted to move above $2,400 multiple times in recent weeks, sellers have consistently defended that level. However, current market conditions indicate bulls may be preparing for another stronger push.
Bullish MACD Crossover Approaches
One of the clearest technical signals supporting Ethereum’s upside case is the approaching bullish crossover on the Moving Average Convergence Divergence (MACD) indicator.
A bullish MACD crossover often suggests momentum is shifting in favor of buyers. Historically, Ethereum has reacted positively to this setup. The last time ETH printed a similar crossover, the asset rallied nearly 25% within a month.
If confirmed, the signal could strengthen trader confidence and increase buying pressure in the short term.
Supertrend Remains Positive Since March
Ethereum’s broader market structure also remains constructive.
The Supertrend indicator has stayed green since mid-March, indicating that ETH remains in an overall uptrend despite recent volatility and repeated rejections near resistance.
This suggests that the recent consolidation below $2,400 may be part of a healthy pause before the next directional move higher.
Key Fibonacci Level Shows Bullish Defense
Ethereum is currently trading close to the 61.8% Fibonacci retracement level near $2,381, a zone often watched closely by traders as a major support area during pullbacks.
The fact that buyers continue defending this region signals strong demand at current levels.
If Ethereum successfully breaks and closes above $2,400 with volume confirmation, the next major upside target sits near the 38.2% Fibonacci retracement level around $2,772.
ETF Inflows Signal Renewed Institutional Interest
Fundamental demand is also improving.
According to SoSoValue data, spot Ethereum ETFs recorded more than $100 million in net inflows last Friday. This ended a four-day streak of negative flows that previously saw over $183 million leave Ethereum investment products.
Although one day of inflows does not confirm a full institutional reversal, it suggests investor appetite may be returning—especially if inflows continue through the week.
Exchange Reserves Hit Lowest Level Since 2016
Another bullish factor comes from on-chain supply data.
CryptoQuant data shows Ethereum balances on exchanges have dropped to 14.5 million ETH, the lowest level recorded since 2016.
Declining exchange reserves typically indicate that investors are moving coins into cold storage or long-term holdings rather than preparing to sell. Lower available supply on exchanges can reduce sell pressure and support price appreciation when demand increases.
Outlook: Can Ethereum Finally Break Through?
Ethereum remains at a critical technical crossroads.
A confirmed breakout above $2,400 could open the door for a rally toward the $2,700–$2,800 region if momentum and buying volume continue to build.
However, failure to break resistance again may keep ETH trapped in its recent consolidation range until stronger catalysts emerge.
For now, traders will be closely watching whether Ethereum can turn repeated resistance into support and begin its next leg higher.
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