Leaving Gaza for Egypt and then entering Israel from northern Sinai through one of the common smuggling routes along the border is how the bomber was suspected to arrive in Eilat.
Ties between the bomber and a young man from Alexandria, Egypt, who was arrested by Egyptian authorities over the weekend, are being investigated.
The boy, 17-year-old Abdel Rahman Majdi from Alexandria, was found with a letter in his possession, stating that he wanted to enter Palestinian Territories through Rafah crossing and carry out a suicide attack in Israel.
The boy was arrested after the driver of the car he rented reported this to the police.
'This could have ended much worse'
The defense establishment believes the attack was "made in Gaza" and claims that the relative quiet in the Strip does not mean a thing.
Before the ceasefire was declared almost three months ago, the IDF warned that despite displays of calm, the terror organizations never ceased to work.
"Without any connection to today's attack," said an IDF source, "the terror organizations in the Strip are using the calm for arming and strengthening themselves."
IDF senior officers actually reported deterioration in anything to do with terrorist activity in Gaza following IDF operations before the ceasefire.
The officers reported that the terrorist possessed more sophisticated weaponry, and have been re-organizing themselves similar to Hizbullah.
"It doesn’t matter where the attack took place. Eilat, Tel Aviv, or Gaza vicinity communities. The fact that attacks are prepared in the Strip shows what is going on there. We should remember that the attack occurred in a small place and there were relatively few casualties. This could have ended much worse," said a defense establishment source.
Hanan Greenberg contributed to this story.