!+[new-update] Why is Ethereum (ETH) price up today? ++!!

Ethereum’s native token, Ether (ETH), jumped 3.40% on Jan. 2, moving closer to trading above $3,500 for the first time since Dec. 19. The crypto asset also moved above its 50-day EMA level on the daily chart after breaking below the indicator last week.

Cryptocurrencies, Markets, Market Analysis, Ether Price, Ethereum Price — *Ethereum 1-day chart. Source: Cointelegraph/TradingView*

The altcoin rallied alongside the broader crypto market, with Bitcoin (BTC) rising above $96,000 and major altcoins such as XRP (XRP) and Solana (SOL) rising by 9%, respectively.

Bitcoin dominance drops below 58%

Ether’s price rally has coincided with Bitcoin dominance dropping under 58% for the first time in two weeks. The continued decline in the BTC dominance index started at the end of 2024, which implied that altcoins were collectively gaining market share against Bitcoin.

Anonymous crypto trader Satoshi also highlighted the Bitcoin dominance percentage in terms of a declining wave, which implied the possible continuity of an altcoin season in 2025. The trader said,

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

Additionally, Ether’s price is up on the back of bullish sentiment emerging from the futures traders over the past couple of days. Data from CryptoQuant highlighted a sharp rise in funding rate on Jan. 1, which signaled that a majority of traders have open long positions.

The rise in funding rate coincided with Ethereum exchange reserves declining on all platforms, which suggested an influx of spot buyers as well.

Ascending triangle pattern sets a $4,000 ETH target

From a technical perspective, Ethereum is forming a bullish ascending triangle pattern on the 4-hour chart, which is eyeing a breakout above the key resistance level at $3,500.

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.

A bullish close above $3,500 on the daily chart is pivotal, and it would confirm a strong breakout from the triangle pattern, and increase investors’ confidence. 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 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.