Ethereum finished April with a 7.3% gain, extending its advance to a second straight positive month. That has shifted attention to May, which has been one of Ethereum’s stronger months on the calendar. ETH rose 25% in May 2024, and the move was even larger in 2025 at 41%.
$2,375 remains the level traders are watching
Crypto analyst Ali Martinez said Ethereum is now testing the upper boundary of its price channel near $2,375. That area has repeatedly capped price action in prior attempts, turning into a firm resistance zone each time ETH moved into it.
If the same pattern appears again, Ethereum could slide back toward $2,210, which marks the lower end of the current channel structure. The setup is tight. Price is now compressed between a well-defined resistance level and a nearby support zone, leaving little room for an unclear outcome.
A close above resistance could open the path to $2,550
Martinez said a strong daily close above $2,375 could trigger a bullish breakout. In that case, Ethereum may have roughly 7% upside from current levels, with the next structural resistance sitting near $2,550.
Institutional flows have also added support to the market backdrop. U.S. spot Ethereum ETFs posted $23.5 million in net inflows last week, with Grayscale’s ETHE contributing a large share of that total. The inflows came while ETH was still consolidating, a sign that institutional demand has continued during a period of price hesitation.
Exchange reserves keep falling
On-chain data points to a tightening supply picture. Ethereum reserves on exchanges have dropped to about 14.5 million ETH, the lowest level on record. More than 1.5 million ETH has been withdrawn from exchanges over the past four months.
That matters because fewer coins sitting on exchanges means less readily available supply for selling. It does not guarantee an immediate upward break, but it does create conditions where stronger demand can move price faster if liquidity stays thin.
Ethereum is entering a decision zone
Ethereum is now sitting at a clear inflection point. A break above $2,375 could push the market toward $2,550 and keep the seasonal May strength in focus. If the level fails again, the pullback scenario toward $2,210 remains active.