ETH Price Jumps 3.40% on January 2
Ethereum’s native token, Ether (ETH), has experienced a significant price surge, rising by 3.40% on January 2. This increase brings ETH closer to trading above $3,500 for the first time since December 19. The altcoin has also managed to move above its 50-day Exponential Moving Average (EMA) level on the daily chart after breaking below it last week.
Ethereum 1-Day Chart
- Source: Cointelegraph/TradingView
Altcoins Rally Alongside Bitcoin
The price increase of ETH is not an isolated event, as the broader crypto market has seen a notable surge. Major altcoins such as XRP (XR) and Solana (SOL) have risen by 9% respectively, while Bitcoin (BTC) has surpassed $96,000.
Bitcoin Dominance Drops Below 58%
The increasing price of ETH coincides with a decline in Bitcoin’s dominance to below 58%. This represents the first time this has occurred in two weeks. The continued decline in the BTC dominance index started at the end of 2024, implying that altcoins are collectively gaining market share against Bitcoin.
Bitcoin Dominance Chart
- Source: Cointelegraph/TradingView
Anonymous Trader Highlights Altcoin Season Continuity
Anonymous crypto trader Satoshi has pointed out the decline in Bitcoin’s dominance percentage as a declining wave, suggesting the possible continuation of an altcoin season in 2025. The trader noted:
"Altcoin history is doing its thing again. Doubting Altcoin season? Think again!"
Bullish Sentiment Emerges from Futures Traders
Ether’s price increase is also attributed to bullish sentiment emerging among futures traders over the past couple of days. Data from CryptoQuant highlights a sharp rise in the funding rate on January 1, indicating that a majority of traders have open long positions.
Ethereum Funding Rate on All Exchanges
- Source: CryptoQuant
The increase in the funding rate corresponds with declining Ethereum exchange reserves across all platforms, suggesting an influx of spot buyers as well.
Ascending Triangle Pattern Sets $4,000 ETH Target
From a technical perspective, Ethereum is forming a bullish ascending triangle pattern on the 4-hour chart. This pattern is eyeing a breakout above the key resistance level at $3,500.
Ethereum 4-Hour Chart
- Source: Cointelegraph/TradingView
However, for an immediate breakout to occur, ETH needs to establish a bullish break above each of its 50-day, 100-day, and 200-day EMA levels. A close above $3,500 on the daily chart would confirm a strong breakout from the triangle pattern and increase investors’ confidence.
Probability of Bullish Move
The ascending triangle pattern carries a 75% probability of a bullish move. As such, Ether’s immediate target remains around $3,850 and $4,000, representing a 15% swing from its current value.
Related Article
- "Bitcoin Traders See ‘Massive’ $130K+ BTC Price Next as TradFi Returns"
Trading Risks
This article does not contain investment advice or recommendations. Every trading and investment move involves risk, and readers should conduct their own research before making a decision.
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