On January 2nd, Ethereum’s native token, Ether (ETH), experienced a significant surge of 3.40%, pushing it closer to trading above $3,500 for the first time since December 19th. This upward movement coincided with the broader crypto market’s rally, with Bitcoin (BTC) breaking above $96,000 and major altcoins like XRP and Solana (SOL) rising by 9% each.
Ethereum Price Rally and Altcoin Season
The recent price increase of Ether has been accompanied by a decline in Bitcoin’s dominance below 58%. This development is significant, as it suggests that altcoins are collectively gaining market share against Bitcoin. According to the Bitcoin dominance chart, this decline began at the end of 2024, implying that an altcoin season may be underway in 2025.
Bitcoin Dominance Chart
Source: Cointelegraph/TradingView
Moreover, anonymous crypto trader Satoshi highlighted the declining wave pattern in the Bitcoin dominance percentage. This trend suggests the possible continuity of an altcoin season in 2025. Satoshi’s statement on X.com reads:
"Altcoin history is doing its thing again. Doubting Altcoin season? Think again!"
Bullish Sentiment from Futures Traders
Ether’s price is also influenced by the emerging bullish sentiment among futures traders over the past couple of days. Data from CryptoQuant reveals a sharp rise in the funding rate on January 1st, indicating that a majority of traders have open long positions.
The increase in the funding rate coincided with Ethereum exchange reserves declining across all platforms, suggesting an influx of spot buyers as well.
Ethereum Funding Rate on All Exchanges
Source: CryptoQuant
Related Article: How ETH, SOL, SUI and AAVE could respond to new Bitcoin price ATHs in 2025
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. This pattern is eyeing a breakout above the key resistance level at $3,500.
Ethereum 4-Hour Chart
Source: Cointelegraph/TradingView
However, there are a couple of hurdles that may hinder an immediate breakout for the altcoin. Firstly, ETH needs to establish a bullish close 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, confirming a strong breakout from the triangle pattern and increasing 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 represents a 15% swing from ETH’s current value.
Related Article: Bitcoin traders see ‘massive’ $130K+ BTC price next as TradFi returns
Investment Advice and Disclaimer
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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