ETH Trading Strategy: Scaling Positions for Q4 Optimism

In a recent update from cryptocurrency analyst Michaël van de Poppe, shared on October 6, 2025, he discussed the dynamic management of Ethereum positions within the MNFund portfolio. Despite holding base assets, van de Poppe emphasized that these can still be actively traded, leading to a strategic scale-off from ETH holdings following a robust performance in July and August. This move allowed the fund to capitalize on gains during that period of upward momentum. Positions were then reinstated in late September, driven by an assumption of a favorable fourth quarter for the markets. This approach highlights a tactical trading style that balances long-term holding with opportunistic selling and buying, providing valuable insights for ETH traders looking to navigate seasonal market shifts.

The decision to scale off ETH positions came after a strong run where Ethereum saw significant price appreciation. For context, during July and August 2025, ETH experienced notable gains, with prices climbing amid broader crypto market recovery and increased institutional interest. Van de Poppe's strategy underscores the importance of timing in cryptocurrency trading, where locking in profits during peaks can fund re-entries at lower levels. By adding back positions in late September, the fund positions itself to benefit from anticipated Q4 positivity, which historically sees heightened activity due to year-end rallies, holiday trading volumes, and potential regulatory developments. Traders should monitor key ETH trading pairs like ETH/USDT and ETH/BTC, where late September saw ETH stabilizing around support levels, potentially setting the stage for upward breaks if market sentiment remains bullish.

Market Sentiment and Institutional Flows Influencing ETH

Market sentiment plays a crucial role in this outlook, with van de Poppe's positive Q4 assumption aligning with broader indicators such as rising on-chain metrics and institutional flows into Ethereum-based assets. For instance, Ethereum's network activity, including transaction volumes and DeFi participation, has shown resilience, supporting the case for a rebound. Institutional investors, drawn by Ethereum's upgrades and layer-2 scaling solutions, continue to pour capital into ETH, as evidenced by recent ETF inflows and whale accumulations. This could translate to trading opportunities, with potential resistance levels around previous highs from August, and support near the late September entry points. Crypto traders might consider strategies like dollar-cost averaging into ETH during dips, especially if Q4 brings positive catalysts such as macroeconomic easing or altcoin season triggers.

From a broader perspective, this ETH strategy reflects cross-market correlations, particularly with stock markets where tech-heavy indices often influence crypto sentiment. As traditional markets gear up for Q4 earnings, any positive surprises could spill over to Ethereum, boosting trading volumes across exchanges. On-chain data from late September indicates increased ETH transfers to exchanges, suggesting preparatory buying. For those analyzing trading volumes, ETH's 24-hour volumes in late September hovered at elevated levels, correlating with van de Poppe's re-entry timing. This positions ETH for potential volatility plays, where traders can use indicators like RSI and MACD to identify overbought or oversold conditions. Overall, van de Poppe's moves encourage a proactive stance, reminding traders that even base assets require vigilant management to maximize returns in the volatile crypto landscape.

Looking ahead, the positive Q4 assumption invites exploration of trading risks and opportunities. If global economic factors align, such as reduced interest rates or geopolitical stability, ETH could target new yearly highs. However, traders must watch for downside risks like regulatory hurdles or Bitcoin dominance shifts that could pressure altcoins. Incorporating tools like moving averages—such as the 50-day and 200-day MAs—can help identify trend reversals. Van de Poppe's update serves as a reminder of the fluid nature of crypto trading, where scaling in and out based on market runs can enhance portfolio performance. For Ethereum enthusiasts, this narrative supports a bullish tilt for Q4, with emphasis on monitoring real-time price movements and volume spikes to inform entry and exit points.