Ethereum Price Up Today: Understanding Current Market Trends and Factors Affecting ETH Value

Ethereum’s Native Token, ETH, Sees a 3.40% Jump on Jan. 2

The price of Ethereum’s native token, Ether (ETH), has seen a significant surge in recent days, rising by 3.40% to move closer to trading above $3,500 for the first time since Dec. 19. This upward trend is part of a broader crypto market rally, with Bitcoin (BTC) also experiencing a substantial price increase.

Ethereum’s Price Rally Coincides with Decline in Bitcoin Dominance

The altcoin’s price surge has coincided with Bitcoin dominance dropping below 58% for the first time in two weeks. The continued decline in the BTC dominance index started at the end of 2024, indicating that altcoins are collectively gaining market share against Bitcoin.

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Bitcoin Dominance Chart

As illustrated by the chart above, obtained from TradingView and Cointelegraph, the decline in Bitcoin’s dominance percentage has been a gradual process. This development is significant, as it suggests that altcoins are gaining traction and confidence among investors.

Anonymous Crypto Trader Satoshi Highlights Altcoin Season

Anonymous crypto trader Satoshi recently highlighted the significance of the declining wave in Bitcoin’s dominance percentage on Twitter, stating:

"Altcoin history is doing its thing again. Doubting Altcoin season? Think again!"

This commentary suggests that the current market trends may be indicative of an upcoming altcoin season.

Bitcoin Dominance Waves by Satoshi

The chart above, obtained from Twitter and X.com, illustrates the decline in Bitcoin’s dominance percentage over time. This visual representation reinforces the idea that altcoins are gaining market share against Bitcoin.

Bullish Sentiment Emerges Among Futures Traders

Data from CryptoQuant highlights a sharp rise in funding rate on Jan. 1, indicating that a majority of traders have open long positions. This development is significant, as it suggests that investors are becoming increasingly bullish on Ethereum’s price prospects.

Ethereum Funding Rate on All Exchanges

The chart above illustrates the rise in funding rate among futures traders over the past couple of days. This increase in funding rate is a key indicator of market sentiment, suggesting that investors are becoming increasingly optimistic about Ethereum’s price prospects.

Ethereum Exchange Reserves Decline

Data from CryptoQuant also shows that Ethereum exchange reserves have declined on all platforms, indicating an influx of spot buyers into the market. This development reinforces the idea that investors are becoming increasingly bullish on Ethereum’s price prospects.

Related: How ETH, SOL, SUI, and AAVE Could Respond to New Bitcoin Price ATHs in 2025

Ascending Triangle Pattern Sets a $4,000 Target for Ether

From a technical perspective, Ethereum is forming a bullish ascending triangle pattern on the 4-hour chart. This pattern has a 75% probability of resulting in a bullish move, with an immediate target of around $3,850 and $4,000.

Ethereum 4-Hour Chart

As illustrated by the chart above, obtained from TradingView and Cointelegraph, Ethereum is forming a bullish ascending triangle pattern on the 4-hour chart. This technical development reinforces the idea that investors should be optimistic about Ether’s price prospects.

Overcoming Technical Hurdles

However, there are a couple of hurdles that 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. A bullish close above $3,500 on the daily chart is pivotal, as it would confirm a strong breakout from the triangle pattern.

Conclusion

In conclusion, Ethereum’s price rally continues to gather momentum, with Ether’s surge past $3,500 being a key indicator of the altcoin’s growing market share against Bitcoin. The bullish sentiment emerging among futures traders and the decline in exchange reserves are significant indicators of market confidence. Technical analysis suggests that Ethereum is forming a bullish ascending triangle pattern on the 4-hour chart, with an immediate target of around $3,850 and $4,000.

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.