Ethereum’s Native Token, Ether (ETH), Sees a 3.40% Jump
On January 2nd, Ethereum’s native token, Ether (ETH), experienced a significant price surge of 3.40%, pushing closer to trading above $3,500 for the first time since December 19th. This impressive rally has been accompanied by the broader crypto market, with Bitcoin (BTC) breaking through the $96,000 mark and major altcoins like XRP and Solana rising by 9% respectively.
The Rise of Altcoins: A Shift in Market Dynamics
Ethereum’s price increase coincides with a significant drop in Bitcoin dominance below 58%, marking the first time in two weeks. The continued decline in the BTC dominance index, which began at the end of 2024, implies that altcoins are collectively gaining market share against Bitcoin.
A New Era for Altcoin Season?
Anonymous crypto trader Satoshi highlighted the significance of this drop in Bitcoin dominance, stating: "Altcoin history is doing its thing again. Doubting Altcoin season? Think again!" This sentiment suggests that the possible continuity of an altcoin season in 2025 may be underway.
Funding Rate and Exchange Reserves Signal a Bullish Trend
Data from CryptoQuant reveals a sharp rise in funding rate on January 1st, indicating that a majority of traders have open long positions. The increase in funding rate coincides with Ethereum exchange reserves declining across all platforms, signaling an influx of spot buyers.
Ascending Triangle Pattern: A Potential $4,000 Target for ETH
From a technical perspective, Ethereum is forming a bullish ascending triangle pattern on the 4-hour chart, aiming to break above the key resistance level at $3,500. However, several hurdles must be overcome before an immediate breakout can occur:
- Establishing Breakout Above EMA Levels: ETH needs to close positions above each of the 50-day, 100-day, and 200-day EMA levels.
- Bullish Close Above $3,500 on Daily Chart: A strong breakout from the triangle pattern will be confirmed with a bullish close above $3,500 on the daily chart.
A Potential 15% Swing for ETH: $3,850 to $4,000
Given the ascending triangle pattern carries a 75% probability of a bullish move, Ether’s immediate target remains around $3,850 and $4,000, which represents a 15% swing from its current value.
Investment Risks: Conduct Your Own Research
Please note that 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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Ethereum 1-day Chart
[Image description: Ethereum 1-day chart showing a price surge of 3.40%]
Source: Cointelegraph/TradingView
Bitcoin Dominance Chart
[Image description: Bitcoin dominance chart showing a drop below 58% for the first time in two weeks]
Source: Cointelegraph/TradingView
