Ethereum’s price faces consolidation after failing to break the $2,400 resistance. The asset is trading above $2,200 but remains at the lower end of its recent range following another rejection. Aggressive long positioning near the $2,400 zone has been unwound, and technical analysis suggests further consolidation is likely.
Ethereum is trading above $2,200 as the third week of May begins. The asset sits on the lower end of its range over the past two weeks after another rejection at higher prices.
The aggressive long positioning that built up into the $2,400 resistance zone has been unwound. The price chart indicates that more consolidation is likely in the coming days.
On the daily chart, ETH is still trading above the 100-day moving average near $2,150. The mildly ascending channel from the February low remains technically intact.
The $2,400 supply zone has now rejected ETH several times without a sustained close above it. The 200-day moving average near $2,600 is the next ceiling above that horizontal level.
To rebuild the case for a recovery, ETH needs to first stabilize above the $2,400 resistance. It would then need to reclaim the 200-day moving average.
On the downside, a close below $2,000 would represent massive structural damage. Buyers must prevent this from happening.
The 4-hour chart shows a pink descending wedge resolving to the downside. The asset is now sitting just above the $2,200 support zone that has held during recent weeks.
The $2,200 zone is the critical level to watch over the next few days. A confirmed break below it opens the door toward the $2,000-$2,100 support zone.
After hitting a multi-year low of approximately 14.5 million ETH in late April, exchange reserves have ticked back up to 14.9 million. This represents a modest increase of around 400,000 ETH over the past few days.
The timing is important because the reserve increase began as the price approached $2,400. *This suggests that a portion of the ETH returning to exchanges represents holders who accumulated near the February lows and moved supply onto exchanges as the price approached their target exit zone.*
The broader picture remains structurally supportive as 14.9 million ETH is still historically low. The multi-month outflow trend has not reversed.
But the subtle shift from declining to slightly rising reserves at the resistance level is not coincidental. It helps explain why $2,400 has been so difficult to clear.
