Ethereum price is eyeing a breakout from the $2,400 resistance, which has capped the token’s gains over the past week.
According to data from crypto.news, Ethereum ($ETH) price rebounded 3.5% to $2,393 on May 4 before facing rejection at $2,400 and stabilizing around $2,370 at press time. While Ethereum has briefly broken above the $2,400 mark on two occasions over the past month, the altcoin lost momentum and quickly retraced below the level.
However, at press time, several technical and fundamental factors suggest that the token could finally escape from the narrow trading range.
Notably, on the daily chart, Ethereum price is approaching a bullish MACD crossover, which typically signals a shift toward upward momentum. The last time such a positive crossover occurred, Ethereum price rose nearly 25% within a month.
The Supertrend has remained green since mid-March, a sign that the broader market structure remains in an uptrend despite recent price fluctuations.
At press time, Ethereum price was near the 61.8% fibonacci retracement level at $2,381, a sign that bulls are aggressively defending the mid-range zone. A decisive break above the current resistance could trigger a breakout from the $2,400 and a move towards the next key 38.2% retracement level at $2,772 if bullish momentum holds.
Besides strong technical signals, on-chain demand also seems to support a potential rally. Data from SoSoValue show that Ethereum ETFs recorded over $100 million in net inflows last Friday, breaking off a 4-day negative streak, which saw $183 million in outflows.
While this is not yet a sign that institutional investors will go all in immediately, it shows renewed appetite for the asset, especially if the positive flows continue to show up this week.
Another catalyst that could support Ethereum’s gains is the drop in $ETH balances on exchanges. Per data from CryptoQuant, Ethereum exchange reserves have fallen to 14.5 million, the lowest level since mid-2016, indicating reduced selling pressure on the token.
