- Ethereum trades below key resistance near $2.4K as traders wait for a decisive breakout direction.
- Rising Binance ETH reserves suggest some investors may be selling during short-term market rebounds.
- Mixed Ethereum ETF flows reveal cautious institutional sentiment despite ongoing recovery attempts.
Crypto analyst Daan Crypto Trades warned that Ethereum is nearing a key breakout point as price action tightens below resistance around $2,400. He posted on X, “$ETH Still struggling with this $2.4K resistance.” According to the analyst, narrowing trend lines suggest Ethereum could soon make a decisive move after weeks of sideways trading.
Ethereum currently trades near $2,255 after recovering from a steep selloff earlier this year that pushed the token below $1,800. Since then, ETH has stabilized and formed an ascending triangle pattern, a setup that traders often associate with building buying pressure beneath a fixed resistance zone.
Ethereum Struggles to Confirm Bullish Momentum
The TradingView chart shared by Daan Crypto Trades shows Ethereum struggling to break above the $2,350 to $2,380 range. Sellers keep stepping in at that level, even after several attempts to push higher. As a result, Ethereum continues to trade below two key long-term indicators that traders closely watch.
Source: X
Ethereum still trades below its 200-day EMA near $2,572 and its 200-day moving average around $2,620. Traders often use those levels to measure broader market direction. Trading activity has also remained relatively moderate compared with the sharp liquidation seen during February’s selloff. That suggests many investors still wait for clearer confirmation before making larger moves.
Ethereum’s rising support trendline remains a key short-term level for traders. If buyers continue holding that support, ETH could make another attempt to break above resistance near $2,380. However, a move below the ascending structure could weaken the recent recovery and expose Ethereum to another pullback.
Binance Flows and ETF Data Raise Caution
Crypto analyst BorisD said recent Binance inflows suggest some traders may be selling into rallies rather than building long-term positions. He noted that Binance reserves increased from 3.360 million ETH on May 5 to 3.840 million ETH by May 10. However, Ethereum still failed to maintain a stronger breakout during that period.
BorisD said the inflows likely reflected traders using short-term price rebounds to reduce exposure. He added that Ethereum could still see temporary upside moves, although broader downside risks remain in place for now.
Meanwhile, Sosovalue data shows investors withdrew $5.65 million from U.S. spot Ethereum ETFs on May 14. BlackRock’s ETHA fund recorded the largest daily outflow at $13.21 million. However, Fidelity Investments’ FETH fund attracted $6.88 million in fresh inflows, reflecting mixed institutional sentiment around Ethereum.
Related: Ethereum Price Prediction: February Accumulators Are Selling Into the Dip as ETH Drops 5.5%
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