Ethereum Price Today: Why Is ETH Up?

As the new year begins, Ethereum’s native token, Ether (ETH), has been on a tear, surging 3.40% on January 2nd to move closer to trading above $3,500 for the first time since December 19th.

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Ethereum 1-Day Chart: A Breakout Above $3,500?

The crypto asset also broke above its 50-day Exponential Moving Average (EMA) level on the daily chart after falling below it last week. This breakout has significant implications for Ethereum’s price action in the short term.

Ethereum Price Rally Coincides with Broader Crypto Market Momentum

Ethereum’s price rally is part of a broader trend in the crypto market, where Bitcoin (BTC) and major altcoins like XRP (XR) and Solana (SOL) are also seeing significant gains. Bitcoin has risen above $96,000, while XRP and Solana have jumped by 9% each.

Bitcoin Dominance Dips Below 58%: Altcoin Season in 2025?

The continued decline in the Bitcoin dominance index below 58% for the first time in two weeks suggests that altcoins are collectively gaining market share against Bitcoin. This trend is highlighted by anonymous crypto trader Satoshi, who noted that "altcoin history is doing its thing again. Doubting Altcoin season? Think again!"

Ethereum Funding Rate Soars: Bullish Sentiment Among Traders

Data from CryptoQuant highlights a sharp rise in funding rates on January 1st, signaling that a majority of traders have open long positions. This bullish sentiment among traders has contributed to Ethereum’s price rally.

Influx of Spot Buyers as Exchange Reserves Decline

The rise in funding rates coincided with a decline in Ethereum exchange reserves across all platforms. This suggests an influx of spot buyers, who are buying Ether on the market rather than through futures contracts.

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. However, there are a couple of hurdles that may hinder an immediate breakout for the altcoin.

Establishing a Bullish Breakout

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.

75% Probability of a Bullish Move

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 is a 15% swing from ETH’s current value. This means that Ethereum has the potential to break above $3,500 in the short term.

Conclusion

Ethereum’s price rally continues to gain momentum, with the altcoin surging 3.40% on January 2nd and breaking above its 50-day EMA level on the daily chart. The broader crypto market is also seeing significant gains, with Bitcoin rising above $96,000 and major altcoins like XRP and Solana jumping by 9%.