$ETH Ethereum (ETH) followed Bitcoin's strong rally today (January 3, 2026), breaking through the $3,100 mark decisively, marking a significant technical breakout after recent weakness.

📊 Today's Market Overview

· Key Developments: Intraday breakthrough above $3,100, current quote around $3,112. 24-hour increase of approximately 4.89%.
· Market Context: Moving in tandem with Bitcoin, together breaking free from the volatility during the New Year period. Early January market was characterized by "balanced and cautious" sentiment.
· Key Data: In the past 24 hours, Ethereum short positions were liquidated to the tune of $86.58 million, far exceeding the $8.84 million in long positions, indicating that the rally caused a large number of short positions to be forcibly closed.

📈 Rally Momentum Analysis

· Leading Drivers: Bitcoin once again broke above $90,000, injecting strong bullish sentiment and capital momentum into the entire crypto market.
· Technical Breakthrough: Successfully surpassed the psychological and technical level of $3,100, attracting trend traders to follow with buy orders.
· Short Squeeze: The sudden unilateral market rally created a "squeeze" on shorts, with massive liquidations (especially shorts) accelerating the price increase.
· Long-term Outlook Boost: Recently, founder Vitalik Buterin reiterated Ethereum’s vision of becoming the "world computer" and set core network goals for 2026, which has somewhat boosted community confidence for the long term.

⚠️ Risks to Watch

· Market Sentiment: Currently driven mainly by Bitcoin and short covering, Ethereum itself lacks independent, strong fundamental catalysts (such as clear progress on spot ETF approval).
· Technical Resistance: At higher price levels (such as the $3,200–$3,300 range), there may be resistance from previous levels, requiring sustained volume to maintain the upward trend.
· Macro Uncertainty: Global macro policies (like Federal Reserve interest rate movements) and geopolitical events remain external risks that could disrupt the market.

💎 Summary and Future Outlook

Overall, Ethereum’s strength today is driven by Bitcoin’s leadership, technical breakthroughs, and short covering. In the short term, its movement will closely follow Bitcoin and be influenced by overall market risk appetite.

Key points to watch:

1. Correlation: Whether ETH can hold above $3,100 and continue to test higher resistance levels alongside Bitcoin.
2. Uniqueness: Whether the market will start trading based on Ethereum’s own positive expectations (such as regulatory progress, ecosystem data).
3. Capital Flow: Whether the rally can attract sustained incremental capital, rather than relying solely on short liquidations.

If you want to learn more about Ethereum’s future technical roadmap (such as specific goals mentioned by Vitalik Buterin) or macro analysis of the cryptocurrency market, I can provide you with more information.