Ethereum Hits a New Yearly High as Volatility Builds Across the Crypto Market

By TradingView – ETHUSD_2026-01-02 (YTD)

Ethereum is back in focus after pushing to a fresh yearly high, signalling renewed momentum across the crypto market. The move comes at a critical moment, with billions of dollars in crypto options expiring, setting the stage for short-term volatility not only for ETH, but also for Bitcoin, which continues to hover near major resistance levels.

Ethereum Breaks Out: Whats Driving the Move？

ETH has surged past the $3,000 level, reaching a new yearly high and confirming a strong bullish structure on the chart. Momentum accelerated as buyers stepped in aggressively, pushing price above recent consolidation zones.

Several factors are aligning behind Ethereums move:

• Strong spot demand following weeks of sideways trading
• Renewed confidence in large-cap crypto assets
• Increased derivatives activity ahead of major options expiry

From a technical perspective, ETHs breakout suggests that buyers remain in control, though short-term pullbacks remain possible given current market conditions.

• Options Expiry: Why Volatility Is Rising

Around $2.2 billion worth of Bitcoin and Ethereum options are set to expire, a scenario that often triggers sharp intraday moves. As traders unwind or roll positions, price action can become erratic, especially when assets are trading near key psychological levels.

For Ethereum, this means:

• Sudden spikes or pullbacks around expiry time
• Increased liquidations on over-leveraged positions
• Potential fake breakouts before direction stabilises
• Bitcoin in the Background, But Still Key

While Ethereum is leading todays narrative, Bitcoin remains a critical anchor for the broader market. BTC recently touched a new yearly high of its own and continues to trade near historically important resistance zones.

As long as Bitcoin holds above its breakout area, Ethereum and other large-cap altcoins are likely to stay supported. Any sharp BTC move, however, could quickly spill over into ETH price action.

• Short-Term Outlook for ETH

Ethereums structure remains bullish, but traders should stay cautious in the near term. Options expiry, combined with elevated leverage, increases the probability of volatility spikes before a clearer trend resumes.

Key levels to watch:

• Support: $2,950 – $3,000
• Resistance: $3,100 – $3,200

A clean hold above $3,000 would strengthen the case for further upside, while a rejection could trigger a temporary cooldown.