As we begin a new year, Ethereum’s native token, Ether (ETH), has been making headlines with its impressive price rally. On January 2nd, ETH jumped a notable 3.40% and is now closer to trading above $3,500 for the first time since December 19th. This significant move has not only caught the attention of investors but also sparked interest in the broader crypto market.

Ethereum’s Price Rally: A Collective Effort

It appears that Ethereum’s price rally has coincided with the broader crypto market’s upward trend. Bitcoin (BTC), often considered a benchmark for the entire cryptocurrency market, rose above $96,000 on January 2nd. Major altcoins such as XRP and Solana (SOL) also saw significant gains of 9% respectively.

**Market Share Shift**
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The increasing price of Ethereum has been accompanied by a decrease in Bitcoin's dominance below 58%. This marks the first time in two weeks that the BTC dominance index has dropped to this level. The continued decline in the BTC dominance index began at the end of 2024, indicating that altcoins are collectively gaining market share against Bitcoin.

**Satoshi's Insights**
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Anonymous crypto trader Satoshi highlighted the significance of Bitcoin's dominance percentage by labeling it as a declining wave. This label implies the possibility of an ongoing altcoin season in 2025. The trader noted: "Altcoin history is doing its thing again. Doubting Altcoin season? Think again!"

**Bullish Sentiment from Futures Traders**
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Ethereum's price is also influenced by the sentiment emerging from futures traders over the past couple of days. Data from CryptoQuant shows a sharp rise in funding rates on January 1st, which signals that most traders have open long positions. This increase in funding rate coincides with a decline in Ethereum exchange reserves across all platforms. The decrease in exchange reserves suggests an influx of spot buyers.

**Technical Perspective: Ascending Triangle Pattern**
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From a technical perspective, Ethereum is forming a bullish ascending triangle pattern on the 4-hour chart. This pattern indicates a potential breakout above the key resistance level at $3,500. However, there are some hurdles that may hinder an immediate breakout for the altcoin.

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**Breaking Down the Hurdles**
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To establish a bullish breakout above each of the following EMA levels and close above these indicators:

*   50-day EMA
*   100-day EMA
*   200-day EMA

A bullish close above $3,500 on the daily chart is pivotal and would confirm a strong breakout from the triangle pattern. This would 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, representing a 15% swing from ETH's current value.

**Conclusion**
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This article highlights Ethereum's price rally and the factors contributing to its growth. The collective effort of the broader crypto market, including Bitcoin's dominance decline and futures traders' sentiment, has played a significant role in Ether's increase.

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**Disclaimer**
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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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