A daily close above $2,375 could open the door to a rise to $2,550, one analyst predicted.
The cryptocurrency market witnessed a solid rally in the past 24 hours, with Ethereum (ETH) briefly rising to nearly $2,400 before being halted after reports that Iran had attacked a US Navy ship.
However, the bears intercepted the move and the asset headed lower in recent hours, while some analysts suggest that a new pullback could be on the way.
What’s next?
At the time of writing, ETH is trading at around $2,350, recording a daily increase of 1%. The renowned analyst Alí Martínez noted that today (May 4), the price reached the top of a certain channel at $2,375, describing it as an “important resistance area to watch.”
He recalled that on previous occasions, this level was followed by a rejection, sending ETH back to the bottom of the formation in search of support.
“If this barrier is not overcome, it could trigger a retreat to the lower limit of the channel, currently close to $2,210,” Martínez assumed.
However, he also presented an optimistic scenario. In his view, if ETH gains the strength to print a daily close above $2,375, this could result in a 7% rally towards the next structural high at $2,550.
CRYPTOWZRD and CryptoMark also addressed the matter. the first suggested that a break above $2,400 could offer a “better long position”, outlining $2,270 as support.
The latter reclaimed that ETH just finished coiling into a “perfect Cup and Handle formation.” They believe the price is “just a few points away” from testing a breakout that could send the valuation directly to $2,850, or the highest level since January of this year.
You may also be interested in:
Whales and more
Large investors have been quite active lately, reinforcing the possibility of ETH making more gains in the near future. As cryptopotato The whales reportedly purchased 140,000 units (worth nearly $330 million) in the span of just four days.
This accumulation is often considered a bullish factor because it reduces immediate selling pressure, reflects strong conviction among large players, and could encourage retail investors to jump on the bandwagon.
ETH spot ETFs are also worth looking at. These products attracted more than $350 million in April, finally breaking the five-month negative streak. Additionally, May started off with a massive entry candle and we have yet to see if institutional interest will remain high over the next four weeks.
It is important to note that the current month has historically been a strong period for the second-largest cryptocurrency, with only three red finishes recorded. However, two of them occurred during the bear markets of 2018 and 2022, once again putting ETH at a crossroads.
