Ethereum (ETH) continues to capture the attention of traders as market momentum builds amid a persistent squeeze, according to a recent update from analyst Michaël van de Poppe. In his daily analysis shared on October 29, 2025, van de Poppe highlights how ETH's price action is tightly coiled, with accumulating momentum that could propel it toward significant gains. The key catalyst, he notes, revolves around the broader business cycle and upcoming decisions from the Federal Open Market Committee (FOMC). If these developments favor risk-on assets, ETH might embark on a new upward leg, potentially surpassing the $5,000 mark. This perspective aligns with current market dynamics where macroeconomic factors heavily influence cryptocurrency valuations, making ETH a prime candidate for volatility-driven trading opportunities.

Ethereum Price Squeeze and Momentum Build-Up

Diving deeper into the technical setup, the ongoing squeeze in ETH's price chart indicates a period of low volatility that's often a precursor to explosive moves. Traders monitoring Bollinger Bands or similar indicators would observe the bands narrowing, signaling compressed price action. Van de Poppe's update emphasizes this buildup, suggesting that ETH is poised for a breakout if external conditions align positively. Historically, such squeezes in Ethereum have led to rallies exceeding 20-30% in short timeframes, especially when supported by favorable monetary policy signals. For instance, past FOMC meetings that hinted at rate cuts have boosted risk assets, including ETH, by enhancing liquidity and investor confidence. Current on-chain metrics, such as increasing transaction volumes and active addresses, further support this momentum narrative, pointing to growing network activity that could underpin a sustained uptrend.

Impact of FOMC Decisions on ETH Trading

The FOMC's role in shaping the business cycle cannot be overstated for ETH traders. Decisions on interest rates, quantitative easing, or forward guidance directly impact risk-on environments, where cryptocurrencies like ETH thrive. If the committee adopts a progressive stance—perhaps signaling dovish policies amid economic data showing controlled inflation—ETH could see inflows from institutional investors seeking higher yields. Van de Poppe predicts this could drive ETH beyond $5,000, a level that represents a psychological and technical resistance point. From a trading standpoint, key support levels to watch include the $3,000-$3,200 range, where ETH has found buyers in recent consolidations. Resistance at $4,000 could act as an intermediate target before pushing higher. Volume analysis shows that ETH's 24-hour trading volume has been robust, often exceeding $20 billion across major exchanges, indicating strong liquidity for potential breakouts. Traders might consider long positions with stop-losses below recent lows to capitalize on this setup, while monitoring correlations with Bitcoin (BTC), which often leads altcoin movements.

Broader market implications tie into how ETH's performance influences the entire crypto ecosystem. As a leading smart contract platform, Ethereum's price surges typically lift related tokens in DeFi and NFTs, creating cascading trading opportunities. Van de Poppe's optimistic outlook underscores the importance of macroeconomic vigilance; for example, if FOMC minutes reveal hints of rate pauses, it could dampen sentiment and lead to a downside break from the squeeze. However, positive progress in the business cycle, such as improving employment data or GDP growth, would likely fuel bullish momentum. SEO-optimized strategies for traders include setting alerts for FOMC announcements and using tools like RSI or MACD to gauge overbought conditions post-breakout. In terms of cross-market correlations, ETH often mirrors movements in tech stocks, so watching indices like the Nasdaq could provide leading indicators. Overall, this setup presents a compelling case for strategic positioning in ETH, balancing risks with the potential for substantial rewards in a risk-on revival.

To optimize trading decisions, consider integrating fundamental analysis with technicals. For voice search queries like 'Ethereum price prediction after FOMC,' the consensus leans toward upside if policies remain accommodative. Long-tail keywords such as 'ETH trading strategies amid business cycle shifts' highlight the need for diversified portfolios. In summary, van de Poppe's analysis positions ETH at a critical juncture, where FOMC outcomes could unlock new highs, making it essential for traders to stay informed on economic calendars and adjust positions accordingly. With no immediate real-time data disruptions noted, the focus remains on this foundational narrative for proactive trading insights.