Edit: The answer marked as "correct" is not correct.
It's easy to do. Try this code, swapping out "ie.jpg" with whatever picture you have handy:
<!DOCTYPE HTML>
<html>
<head>
<script>
var canvas;
var context;
var ga = 0.0;
var timerId = 0;
function init()
{
canvas = document.getElementById("myCanvas");
context = canvas.getContext("2d");
timerId = setInterval("fadeIn()", 100);
}
function fadeIn()
{
context.clearRect(0,0, canvas.width,canvas.height);
context.globalAlpha = ga;
var ie = new Image();
ie.onload = function()
{
context.drawImage(ie, 0, 0, 100, 100);
};
ie.src = "ie.jpg";
ga = ga + 0.1;
if (ga > 1.0)
{
goingUp = false;
clearInterval(timerId);
}
}
</script>
</head>
<body onload="init()">
<canvas height="200" width="300" id="myCanvas"></canvas>
</body>
</html>
The key is the globalAlpha property.
Tested with IE 9, FF 5, Safari 5, and Chrome 12 on Win7.