Ethereum Should Be Sold by October According to Market Expert, Here's the Rationale Behind It
In a recent post, market analyst Orbion has issued a warning to investors, predicting a significant correction in the Ethereum market in the coming weeks. According to Orbion, the altcoin's price could experience a decline due to the current euphoric conditions and extreme profit-taking among holders.
Orbion's analysis is based on several key on-chain indicators that have historically signalled the tops in Ethereum's market cycles. These indicators include the Net Unrealized Profit/Loss (NUPL), Spent Output Profit Ratio (SOPR), and Market Value to Realized Value (MVRV).
When NUPL reaches around +0.75, it indicates extreme unrealized profit across holders, suggesting a market top or overextended euphoric conditions. After the euphoria peak, SOPR turns negative, meaning coins are being sold at a loss, often signaling the start of a decline and market top. Very high MVRV values (often in the deep red zone) mean the market value is far above the cost basis, an unsustainable condition that historically corresponds with cycle tops.
Orbion believes that the current values of these indicators suggest the Ethereum market is overheated and likely to face a significant correction soon after. In fact, a combination of NUPL near +0.75, SOPR turning negative, and a high MVRV has been used by experts like Orbion to call cycle tops and plan exits.
Despite the impending correction, Orbion remains bullish on Bitcoin, Ethereum, and the broader crypto market due to the expected Fed rate cut in September. However, Orbion advises investors to take profits by October due to the expected post-peak correction. In particular, Orbion predicts that by the end of October, Bitcoin could be in the $55,000 range and Ethereum back to $1,400.
Orbion's analysis of Ethereum's price action suggests that the altcoin could reach its peak by then. Ethereum has broken and held above $4,200, and the short-term target for Ethereum, according to Orbion, is in the $5,800 to $6,000 range.
It's important to note that our news source has a strict editorial policy focusing on accuracy, relevance, and impartiality. This article aims to provide factual information based on Orbion's analysis and the historical performance of the key on-chain indicators mentioned.
Investors are encouraged to conduct their own research and consult with financial advisors before making investment decisions. The crypto market can be volatile, and it's crucial to stay informed and make informed decisions.
- Orbion's prediction suggests that Ethereum's altcoin might face a significant correction in the coming weeks due to the current euphoric trading conditions.
- The analyst's analysis of the Ethereum market is based on several key on-chain indicators such as NUPL, SOPR, and MVRV, which have historically signaled market cycle tops.
- According to Orbion, when NUPL reaches around +0.75, it indicates extreme unrealized profit across holders, suggesting a market top or overextended euphoric conditions.
- Despite the impending correction in the Ethereum market, Orbion remains bullish on Bitcoin, Ethereum, and the broader crypto market due to the expected Fed rate cut in September.
- Investors are encouraged to conduct their own research and consult with financial advisors before making investment decisions in the crypto market, given its volatile nature and the need for staying informed.
