Ethereum Price Today Surges: What's Behind the Recent ETH Market Rise

Table of Contents

Ethereum’s Native Token Sees a Surge in Value

On January 2nd, Ethereum’s native token, Ether (ETH), experienced a significant price jump of 3.40%. This surge has brought the altcoin closer to trading above $3,500 for the first time since December 19th. The crypto asset also surpassed its 50-day Exponential Moving Average (EMA) level on the daily chart after breaking below the indicator last week.

Ethereum’s Price Movement

Ether’s price rally coincided with the broader crypto market’s growth, with Bitcoin (BTC) rising above $96,000 and major altcoins such as XRP and Solana (SOL) increasing by 9% respectively.
The cryptocurrency market is witnessing a shift in dominance, with Bitcoin’s dominance dropping below 58%. This decline started at the end of December, indicating that altcoins are collectively gaining market share against Bitcoin.

Technical Analysis

From a technical perspective, Ethereum is forming a bullish ascending triangle pattern on the 4-hour chart. This pattern has a 75% probability of a bullish move and is eyeing a breakout above the key resistance level at $3,500.

For an immediate breakout, ETH needs to establish a bullish close above each 50-day, 100-day, and 200-day EMA level.
A bullish close above $3,500 on the daily chart would confirm a strong breakout from the triangle pattern and increase investors’ confidence.
The immediate target for Ether remains around $3,850 and $4,000, representing a 15% swing from ETH’s current value.

Market Sentiment

The rise in funding rate on January 1st signaled that a majority of traders have open long positions. This increase in bullish sentiment is accompanied by Ethereum exchange reserves declining on all platforms, suggesting an influx of spot buyers.

Conclusion

Ethereum’s price rally has coincided with Bitcoin dominance dropping under 58%. The continued decline in the BTC dominance index implies that altcoins are collectively gaining market share against Bitcoin. With a bullish ascending triangle pattern forming and a majority of traders holding open long positions, Ether is poised to continue its upward trajectory.

Anonymous Crypto Trader Highlights Declining Wave

Satoshi, an anonymous crypto trader, highlighted the Bitcoin dominance percentage in terms of a declining wave. This implies the possible continuity of an altcoin season in 2025. The trader stated, "Altcoin history is doing its thing again. Doubting Altcoin season? Think again!"

Funding Rate and Exchange Reserves

Data from CryptoQuant highlights a sharp rise in funding rate on January 1st. This indicates that a majority of traders have open long positions.

A funding rate surge suggests bullish sentiment among traders, which can lead to higher prices.
The increase in funding rate coincided with Ethereum exchange reserves declining on all platforms, indicating an influx of spot buyers.

Technical Perspective

Ethereum is forming a bullish ascending triangle pattern on the 4-hour chart. This pattern has a 75% probability of a bullish move and is eyeing a breakout above the key resistance level at $3,500.

For an immediate breakout, ETH needs to establish a bullish close above each 50-day, 100-day, and 200-day EMA level.
A bullish close above $3,500 on the daily chart would confirm a strong breakout from the triangle pattern and increase investors’ confidence.
The immediate target for Ether remains around $3,850 and $4,000, representing a 15% swing from ETH’s current value.

Conclusion

Disclaimer

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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