Step 1: Pick a friendlier basis.
Mole fractions with decimals get messy, so scale up. Take a batch of 25 mol total solution. Since $x_{ethanol}=0.04$, that gives exactly $n_{ethanol}=1$ mol and $n_{water}=24$ mol, same ratio, cleaner numbers.
Step 2: Convert the water's moles into a volume.
Mass of water $= 24 \times 18 = 432$ g. With density $1\text{ g mL}^{-1}$ and ethanol's volume ignored, the solution volume is just this water volume: $V = 432\text{ mL} = 0.432\text{ L}$.
Step 3: Compute molarity from moles of solute over volume.
\[ M = \frac{n_{ethanol}}{V} = \frac{1}{0.432} \]
\[ \boxed{M \approx 2.31\text{ mol L}^{-1}} \]