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Ethereum is holding above the $2,300 support zone despite heavy retail selling pressure and lingering caution across derivatives markets. Large holders have kept accumulating during the recent consolidation phase, creating a growing divergence between whale positioning and short-term trader sentiment.
At the time of writing, Ether (ETH) is trading at $2,370.50, with buyers again attempting to reclaim the key $2,400 resistance area after several failed breakout attempts in recent weeks.
Ethereum’s stabilization is unfolding while Bitcoin continues attracting stronger momentum and institutional attention, leaving Ethereum stuck between improving technical conditions and weak spot participation.
On-chain data from CryptoQuant and Santiment shows that wallets holding between 100 and 10,000 ETH distributed nearly 1.5 million ETH during the past two weeks, including roughly 820,000 ETH in the latest seven-day period alone.
The latest distribution wave suggests much of the recent selling activity is coming from shorter-term market participants rather than long-term conviction holders. Santiment’s 90-day Mean Coin Age metric dropped sharply over the past week, showing that recently acquired coins are moving back into circulation instead of remaining dormant.
Staking behavior also reflects a cautious tone. Ethereum investors unstaked nearly 300,000 ETH last week, marking the largest weekly staking outflow since November 2025. Exchange flow data adds another layer to the picture. ETH withdrawals across major exchanges fell to their lowest monthly level since September 2024 in April 2026. The slowdown suggests fewer investors are moving ETH into private wallets or long-term storage, reflecting weaker conviction among spot buyers despite the recent price recovery.
Ethereum’s recovery above $2,200 still lacks aggressive spot accumulation, which helps explain why traders remain cautious near resistance. Instead, much of the recent upward pressure appears linked to positioning activity and short liquidations rather than broad investor participation.
On derivatives platforms, ETH perpetual funding rates have remained negative for most of the past month despite price stabilization. Open interest has climbed back above 14 million ETH, but traders continue positioning defensively around the current range.
While retail wallets reduced exposure, larger holders moved in the opposite direction.
CryptoQuant data shows whale wallets accumulated roughly 230,000 ETH during the past week. One wallet identified as “0x0a8” withdrew another 9,288 ETH worth nearly $22 million from Bybit, increasing its holdings to more than 27,000 ETH.
That divergence between retail and whales has become increasingly visible since Ethereum reclaimed the $2,200 to $2,300 support area in April 2026. Large holders appear willing to accumulate near current levels even as broader sentiment remains mixed.
Some traders believe Ethereum’s long-term supply dynamics are beginning to support that positioning. Ethereum educator and Bankless co-founder Ryan Sean Adams pointed to Ethereum’s rapid gas limit expansion, noting that the network moved from 30 million gas to 60 million gas within months and could approach 200 million later this year.
Ethereum L1 just woke up.
4 years at 30M gas. Then 36M to 60M (in 3 months). Glamsterdam takes us to 200M this year.
30M to 200M = 6.7x in 12 months.
Closing in on 100 TPS this yr.
10,000 TPS by 2030 was a crazy aggressive hypothetical and amazingly…we're on track?… pic.twitter.com/HV5kjX6lxd
— RYAN SΞAN ADAMS – rsa.eth 🦄 (@RyanSAdams) May 5, 2026
The argument isn’t simply about network activity. It also reflects expectations that scaling improvements, staking demand, and reduced liquid supply could eventually tighten available ETH across the market. Still, Ethereum has yet to translate those structural improvements into stronger price leadership against Bitcoin.
Technically, Ethereum’s structure has improved since February. ETH continues printing higher lows while holding above the 20-day, 50-day, and 100-day exponential moving averages clustered between roughly $2,260 and $2,360.
That support structure has helped prevent deeper downside even as sellers repeatedly defend the $2,388 to $2,400 resistance zone.
Analyst Ali Martinez, known online as Ali Charts, highlighted a developing golden cross between Ethereum’s 50-day and 100-day simple moving averages, a setup that could support a move toward the 200-day SMA near $2,680 if resistance eventually breaks.
I’m seeing a golden cross between the 50 and 100 SMA on Ethereum $ETH, which could set up a move toward the 200 SMA at $2,680. pic.twitter.com/LkjDtvwwHJ
— Ali Charts (@alicharts) May 5, 2026
Still, not everyone sees the setup as bullish yet.
Market analyst Ted Pillows argued that Ethereum continues struggling at the same resistance area despite Bitcoin’s broader strength. According to him, downside risk increases if ETH can’t establish acceptance above $2,400.
$ETH failed to break above the $2,400 level again.
Despite Bitcoin's strength, Ethereum is still looking weak.
Until ETH breaks above the $2,400 level, the risk of downside will go up. pic.twitter.com/WYyxuOrhdN
— Ted (@TedPillows) May 5, 2026
That caution also appears in broader technical positioning. Crypto market researcher ‘MoreCryptoOnline’ noted that Ethereum is currently testing the weekly Bollinger Band midline from below, a level that acted as resistance during several failed recovery attempts throughout the previous bear cycle.
Momentum indicators remain constructive but mixed. Daily RSI readings continue holding near bullish territory without reaching overheated conditions, while MACD signals have started flattening after recent upside momentum slowed near resistance.
Ethereum’s current setup reflects a market caught between improving structure and hesitant participation.
Some traders see the combination of whale accumulation, higher lows, and strengthening moving averages as early signs of a broader recovery phase. Others remain cautious because spot participation remains relatively weak while derivatives positioning continues leaning defensive.
Aaron Dishner, a crypto trader, recently described Ethereum’s latest move as a breakout attempt with muted spot volume support, suggesting buyers still need to prove conviction at higher levels.
2/ Ethereum is mirroring Bitcoin with a breakout attempt above overhead resistance
Price remains in the daily TBO Cloud but RSI is pushing through key resistance
This looks like a bullish setup
Volume on the advance is muted, suggesting limited spot buyer support pic.twitter.com/CpsjtaBus7
— Aaron Dishner (@MooninPapa) May 6, 2026
That distinction is becoming increasingly important near the $2,400 region. A confirmed breakout above that level would place the 200-day moving average near $2,680 back into focus and strengthen the argument that Ethereum is rebuilding medium-term momentum.
If ETH fails to reclaim that zone decisively, the asset could remain stuck in another prolonged consolidation range while traders continue rotating capital toward Bitcoin and higher-momentum sectors.
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