Recent technical signals and liquidation data show growing trader activity as Ethereum consolidates within a tightening range ahead of key macroeconomic decisions.
Calm Before the Storm: Ethereum Holds Near $4,000
At the time of writing, Ethereum trades around $3,990, showing mild daily losses but holding firm compared to broader market fluctuations. Despite a 3.8% drop over the past 24 hours, ETH has gained nearly 4% over the past week, reflecting resilience in the face of volatility.
Data from Coinglass shows total liquidations exceeding $155 million in the last 24 hours, including $116 million in long positions and $39 million in shorts. This heavy liquidation activity suggests that traders are increasingly positioned for a major move, though the market remains evenly split on the next direction.
RSI and MACD Point to Potential Recovery
Technical indicators on the daily chart show Ethereum building strength below the surface. The RSI hovers around 47, signaling neutral momentum with room for further upside if buyers return. Meanwhile, the MACD is slightly positive, showing early signs of a potential bullish crossover as the histogram begins to turn green again.
Such technical conditions often precede renewed rallies—especially when price consolidates near key support levels. The $3,800–$3,850 range has repeatedly acted as a base for rebounds, and maintaining this zone could set the stage for a breakout toward $4,200 and beyond.
Analysts Expect Breakout Above Resistance Zone
Crypto analyst Michaël van de Poppe shared on X that Ethereum remains in a “squeeze” pattern, with momentum steadily building up.
Daily update on $ETH.
Still the same squeeze and the same momentum being build up.
It's all coming down to the business cycle and the decisions made by the FOMC.
If that's progressive for risk-on assets, I think $ETH is ready for a new leg upwards and $5,000+.
— Michaël van de Poppe (@CryptoMichNL) October 29, 2025
He noted that the asset’s next move will likely depend on the Federal Open Market Committee (FOMC) decision and broader economic sentiment. “If that’s progressive for risk-on assets,” he said, “Ethereum is ready for a new leg upwards and $5,000+.”
Another analyst, Crypto Rover, pointed to an “orange box” resistance zone that ETH needs to break above to confirm a bullish reversal. On the ETH/BTC chart, price has bounced from its ideal buying zone and is now forming higher lows—another signal that accumulation could be underway.
$ETH needs to break above the orange box to flip bullish again!
— Crypto Rover (@cryptorover) October 29, 2025
Market Context: Awaiting the Fed’s Next Move
Ethereum’s price movement is also being shaped by expectations around U.S. monetary policy. Investors are watching the Fed’s next decision closely, as a dovish tone or rate cut speculation could spark renewed demand for risk assets, including cryptocurrencies.
A more favorable business cycle outlook, combined with easing financial conditions, could provide the fuel ETH needs to break past the $4,200–$4,300 resistance zone and aim for the next major milestone near $5,000.
Outlook: Coiled Spring Before the Break
Market sentiment remains cautiously optimistic. As one trader put it, Ethereum currently resembles “a coiled spring”—its volatility compressed and ready to expand once a catalyst appears. With daily trading volume above $36 billion and a market capitalization of $481 billion, Ethereum remains the dominant altcoin driving much of the broader crypto market’s direction.
If ETH maintains support above $3,800 and successfully breaks through its resistance zone, analysts see the possibility of a sharp upside extension, potentially testing $4,800 or new all-time highs later this quarter.