On January 2nd, Ethereum’s native token, Ether (ETH), experienced a significant surge of 3.40%, bringing it closer to trading above $3,500 for the first time since December 19th. This price increase has been accompanied by an upward trend in the broader crypto market, with Bitcoin (BTC) rising above $96,000 and major altcoins such as XRP and Solana experiencing notable gains.
A Glimpse into the Crypto Market’s Performance
The crypto market’s performance is a topic of interest for investors and traders alike. The chart below illustrates Ethereum’s 1-day price movement.
Ethereum 1-Day Chart
[Image description: A line graph illustrating Ethereum’s 1-day price movement]
Source: Cointelegraph/TradingView
As evident from the chart, Ether has been on a steady upward trajectory in recent days. This surge can be attributed to various factors, including:
- The broader crypto market rally
- Bitcoin’s dominance dropping below 58%
- Bullish sentiment emerging from futures traders
Bitcoin Dominance Drops Below 58%
The decline in Bitcoin’s dominance percentage has been a notable trend in the past few weeks. This development is significant, as it implies that altcoins are collectively gaining market share against Bitcoin.
Bitcoin Dominance Chart
[Image description: A line graph illustrating Bitcoin’s dominance percentage]
Source: Cointelegraph/TradingView
The decline in Bitcoin’s dominance percentage has been a topic of discussion among crypto enthusiasts. Anonymous trader Satoshi recently highlighted this trend, suggesting that it may be indicative of an altcoin season in 2025.
Bitcoin Dominance % Waves by Satoshi
[Image description: A line graph illustrating the decline in Bitcoin’s dominance percentage]
Source: X.com
Satoshi’s analysis implies that the continued decline in Bitcoin’s dominance percentage could lead to a strong performance from altcoins, including Ethereum.
Bullish Sentiment Among Futures Traders
The rise in Ether’s price can also be attributed to bullish sentiment emerging from futures traders. Data from CryptoQuant highlights a sharp increase in the funding rate on January 1st, indicating that a majority of traders have open long positions.
Ethereum Funding Rate on All Exchanges
[Image description: A line graph illustrating the rise in Ethereum’s funding rate]
Source: CryptoQuant
The influx of spot buyers is also reflected in the decline in Ethereum exchange reserves. This development suggests that investors are becoming increasingly bullish on Ether, driving its price upwards.
Ascending Triangle Pattern Sets a $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
[Image description: A line graph illustrating Ethereum’s 4-hour price movement]
Source: Cointelegraph/TradingView
However, there are a couple of hurdles that may hinder an immediate breakout for Ether. Firstly, ETH needs to establish a bullish breakout above each 50-day, 100-day, and 200-day EMA level and close a position above these indicators.
A bullish close above $3,500 on the daily chart is pivotal, as it would confirm a strong breakout from the triangle pattern and increase investors’ confidence. With an ascending triangle pattern carrying a 75% probability of a bullish move, Ether’s immediate target remains around $3,850 and $4,000, which represents a 15% swing from ETH’s current value.
A Word of Caution
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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