Insights from the Ethereum (ETH) Rainbow Chart counsel that the second-largest cryptocurrency by market cap is more likely to see additional momentum on August 1.
As of press time, Ethereum was buying and selling round $3,700, inserting it throughout the “Regular…” zone of the chart.
The Rainbow Chart is a long-term valuation mannequin that makes use of a logarithmic curve and coloration bands as an instance Ethereum’s historic worth sentiment. It helps traders gauge whether or not the asset is undervalued or overheated, with out predicting short-term actions.
For August 1, 2025, the mannequin estimates Ethereum might commerce between $4,752.48 and $6,901.15, a variety comparable to the “HODL!” zone. Nonetheless, primarily based on Ethereum’s present place and worth momentum, the asset is more likely to stay within the “Regular…” zone over the subsequent few days.
The bottom band on the chart, labeled as “Fireplace Sale” ($881.52 to $1,193.99), signifies excessive undervaluation. That is adopted by “Undervalued” ($1,193.99 to $1,649.69), then “Accumulate” ($1,649.69 to $2,148.10), a variety traditionally favorable for long-term shopping for.
Above that’s the “Nonetheless Low cost” band ($2,148.10 to $3,298.74). The subsequent zone is “Regular…” ($3,298.74 to $4,752.48), the place Ethereum at present sits, indicating secure development and decreased volatility.
The “HODL!” zone spans $4,752.48 to $6,901.15, the place long-term holders usually strengthen their conviction. Above that’s “Is that this the Flippening?” ($6,901.15 to $10,038.05), marking the onset of hypothesis and hype.
Larger up, “However have we earned it?” ranges from $10,038.05 to $14,352.17, and the topmost band, “Most Bubble Territory”, spans $14,352.17 to $20,456.93, reflecting peak exuberance.
Ethereum worth evaluation
On the time of reporting, Ethereum was up 0.47% previously 24 hours, buying and selling at $3,791. On the weekly timeframe, the asset has gained about 2.5%.
Ethereum’s current bullish rally, which seems to be focusing on the $4,000 stage, is supported by key technical indicators. The 50-day easy transferring common (SMA) stands at $2,836.31, whereas the 200-day SMA is at $2,404.22.
The hole between the present worth and each SMAs indicators a sustained bullish pattern, with Ethereum buying and selling nicely above each its short- and long-term averages.
Nonetheless, the 14-day Relative Power Index (RSI) is at 80.01, a stage that signifies overbought situations. Whereas this doesn’t essentially point out an imminent reversal, it does counsel that the asset could also be due for a short-term pullback or consolidation.
Featured picture through Shutterstock
