Orbion, a market expert, has recommended that investors sell off all their Ethereum holdings by October. His analysis of ETH’s price action suggests that the altcoin may reach its peak by then. ETH’s worst chart ever has led him to this conclusion.
Why Investors Should Consider Selling Ethereum In October
In a recent announcement on X, Orbion shared that he remains bullish on ETH for now but plans to exit completely by the end of October. He pointed out that while Bitcoin has seen a 100% gain from its lows this year, showing strong momentum and institutional demand, Ethereum has broken and maintained its position above $4,200, setting the stage for a potential final surge in the upcoming weeks.
Related Reading
Orbion believes that the current setup appears robust, but historical patterns indicate that every cycle ends abruptly and dramatically when it reaches its peak. He has set a short-term target for Ethereum in the $5,800 to $6,000 range, assuming the momentum is sustained. This target represents a 300% increase from the cycle lows.
Orbion anticipates that Bitcoin will begin showing signs of peaking in late September, with Ethereum likely following suit shortly after, possibly in October. He predicts that by the end of October, Bitcoin could be trading around $55,000 and Ethereum could drop back to $1,400. This prediction underpins his advice for investors to cash out by October, as this is a typical post-peak correction scenario.
He advises investors to start planning their exits now as market momentum can shift quickly without warning. Altcoins can experience a rapid 20% decline in a single day when liquidity diminishes. Failing to prepare could lead investors to panic sell rather than sell from a position of strength.
Key Indicators to Monitor for ETH’s Market Peak
Orbion highlights the significance of key metrics such as NUPL, SOPR, and MVRV in signaling market tops in previous cycles. An NUPL reading of +0.75 indicates extreme unrealized profits among holders, a red flag according to Orbion. Additionally, a negative SOPR suggests that coins are being sold at a loss post-euphoria peak.
Related Reading
Furthermore, a deep red MVRV signifies that the market value significantly exceeds the cost basis, which is unsustainable over an extended period. Despite these warning signs, Orbion maintains a bullish outlook on Bitcoin, Ethereum, and the broader crypto market, citing the anticipated Fed rate cut in September as a potential catalyst.
He believes that the rate cut will inject liquidity into the market, fueling the final leg of the rally. However, he cautions that this surge will be brief, lasting weeks rather than months. Therefore, investors need to plan their exits ahead of time.
Currently, Ethereum is trading around $4,310, showing an increase in the last 24 hours, according to CoinMarketCap data.
Featured image from iStock, chart from Tradingview.com