Ethereum Price Analysis: $2.4K Remains ETH’s Biggest Barrier

Ethereum is trading at $2.32k as the first weekend of May unfolds, caught in the same technical gridlock it has been trapped in for the past three weeks. The asset is pressing against the $2.4k resistance zone with neither the conviction to break through nor the weakness to collapse below the ascending channel that has supported the recovery since February.

What continues to change, however, is the on-chain picture beneath the surface. Exchange reserves have just hit another low, as the supply is being quietly withdrawn from exchanges.

Ethereum Price Analysis: The Daily Chart

ETH is once again testing the vicinity of the declining 100-day MA from above, as the moving average now sits at approximately $2.2k.The RSI is also hovering around 55, indicating a market neither building nor losing momentum. The ascending white channel from the February low remains intact, with its lower boundary providing support near $2k.

Above, the $2.4k supply zone remains the only level that changes the narrative. A daily close through it would simultaneously represent a horizontal resistance break and likely, a retest of the 200-day MA (~$2.7k). This potential breakout would essentially open the door toward the $2.8k critical supply zone. On the other hand, a failure to hold above $2.2k and the 100-day MA on the next pullback would begin to threaten the channel structure and refocus attention on the $1.8k demand area.

ETH/USDT 4-Hour Chart

The falling wedge that formed after the mid-April high near $2.4k is tightening further on the 4-hour chart. The price is now sitting just below the higher boundary, around $2.35k, moving toward it once more. The RSI has also recovered above 50 on this timeframe, but it is yet to offer a strong directional signal.

The $2.4k resistance zone has capped every recent attempt to push higher since, and that remains the immediate ceiling. A close above it resolves the wedge bullishly and targets the larger channel’s higher boundary near $2.5k. Lower, a break below the wedge and the recent low near $2.2k would invalidate the pattern and lead to a potential drop toward the lower trendline of the ascending channel near $2.1k.