Ethereum’s Price Jump Closes In On $3,500 Mark For The First Time Since December 19
On January 2nd, Ethereum’s native token, Ether (ETH), experienced a notable price surge of 3.40%, moving closer to trading above the crucial $3,500 mark for the first time since December 19th. This significant increase has seen ETH move above its 50-day Exponential Moving Average (EMA) level on the daily chart, following a break below the indicator last week.
Ethereum 1-Day Chart
Image: Ethereum 1-day chart. Source: Cointelegraph/TradingView
Altcoin Market Sees Growth, Bitcoin Dominance Drops Below 58%
Ethereum’s price rally has coincided with a broader crypto market growth, with major altcoins such as XRP and Solana (SOL) experiencing significant gains. Furthermore, the Bitcoin dominance index has dropped below 58% for the first time in two weeks, indicating that altcoins are collectively gaining market share against Bitcoin.
Bitcoin Dominance Chart
Image: Bitcoin dominance chart. Source: Cointelegraph/TradingView
Anonymous Crypto Trader Satoshi Highlights Possible Altcoin Season Continuity
Anonymous crypto trader Satoshi has highlighted the Bitcoin dominance percentage in terms of a declining wave, suggesting possible continuity of an altcoin season in 2025. The trader stated: "Altcoin history is doing its thing again. Doubting Altcoin season? Think again!"
Bitcoin Dominance % Waves by Satoshi
Image: Bitcoin dominance % waves by Satoshi. Source: X.com
Bullish Sentiment Emerges from Futures Traders, Funding Rate Sees Sharp Rise
Ethereum’s price is also up due to bullish sentiment emerging from the futures traders over the past couple of days. Data from CryptoQuant highlights a sharp rise in funding rate on January 1st, signaling that a majority of traders have open long positions.
Ethereum Funding Rate on All Exchanges
Image: Ethereum funding rate on all exchanges. Source: CryptoQuant
Influx of Spot Buyers Suggested, Exchange Reserves Decline
The rise in funding rate coincided with Ethereum exchange reserves declining on all platforms, suggesting an influx of spot buyers.
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, eyeing a breakout above the key resistance level at $3,500.
Ethereum 4-Hour Chart
Image: Ethereum 4-hour chart. Source: Cointelegraph/TradingView
Establishing a Bullish Breakout Above EMA Levels Crucial for Immediate Price Surge
However, a couple of hurdles may hinder an immediate breakout for the altcoin. 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.
Bullish Close Above $3,500 on Daily Chart Pivotal
A bullish close above $3,500 on the daily chart is pivotal, confirming a strong breakout from the triangle pattern. This would increase investors’ confidence in Ethereum’s price movement. With an ascending triangle pattern carrying a 75% probability of a bullish move, Ether’s immediate target remains around $3,850 and $4,000, representing a 15% swing from ETH’s current value.
Investor Note
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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