Market analyst Orbion has recently recommended that investors should consider selling all their Ethereum holdings by October. After analyzing Ethereum’s price action, Orbion has predicted that the altcoin could potentially reach its peak by then.
In a recent X post, Orbion mentioned that he is currently bullish on ETH, but his strategy is to completely exit by the end of October. He pointed out that Bitcoin has already experienced a 100% gain from its lows this year, indicating strong momentum and institutional demand. Additionally, Ethereum has successfully broken and maintained above the $4,200 mark, setting the stage for a final push higher in the upcoming weeks.
Orbion emphasized that while the current setup appears strong, every market cycle eventually culminates in a rapid and severe manner when it reaches its peak. He set a short-term target for Ethereum in the $5,800 to $6,000 range if it continues to sustain its momentum, representing a potential 300% gain from the cycle lows.
The market expert projected that Bitcoin will likely begin displaying signs of topping out towards the end of September, with Ethereum following suit shortly after, possibly in October. By the end of October, BTC could be hovering around $55,000, with ETH potentially dropping back to $1,400. Orbion advised investors to take profits by October, clarifying that this does not necessarily indicate a bearish stance but rather reflects the historical patterns of post-peak corrections.
Orbion stressed the importance of planning exit strategies in advance, as market dynamics can shift rapidly when momentum fades. He cautioned that altcoins could experience a sudden 20% drop in a single day as liquidity diminishes, potentially causing investors to panic sell at lower levels if they are not prepared.
Key metrics to watch for Ethereum’s market top, according to Orbion, include indicators like NUPL, SOPR, and MVRV, which have historically signaled market peaks efficiently. He highlighted that extreme levels of unrealized profits among holders, negative SOPR readings indicating selling at a loss post-euphoria, and deep red MVRV values indicating unsustainable market value above cost basis are all warning signs to watch out for.
Despite the cautionary outlook on Ethereum, Orbion remains bullish on Bitcoin, Ethereum, and the broader crypto market due to the anticipated Fed rate cut in September. He believes that this will serve as a catalyst for the crypto market, with liquidity injections fueling the final leg of the rally. However, Orbion cautioned that this rally will be swift, lasting only weeks rather than months, underscoring the importance of planning exit strategies in advance.
As of the time of writing, Ethereum is trading around $4,310, showing an upward trend in the last 24 hours, according to data from CoinMarketCap.
In conclusion, Orbion’s analysis and recommendations serve as a valuable guide for investors looking to navigate the volatile cryptocurrency market and capitalize on potential opportunities while mitigating risks.