Ethereum (ETH) is striving to reach a new all-time high, a move investors have anticipated following the launch of the cryptocurrency’s spot exchange-traded fund (ETF).
Currently, the second-largest cryptocurrency by market capitalization has shown short-term volatility as it attempts to break through the crucial $3,000 resistance zone. Despite bullish developments like the rollout of the ETF, Ethereum’s market dominance has declined in recent months compared to competitors such as Bitcoin (BTC).
Over the past 30 days, Ethereum has plunged by over 23% as it struggles to recover from a monthly low of around $2,100. ETH was trading at $2,631 at press time, gaining almost 1% in the past 24 hours.
Ethereum 30-day price chart. Source: Finbold
Notably, investors are closely watching the ETF as a potential catalyst for new highs. This comes as BlackRock’s (NYSE: BLK) iShares Ethereum Trust (ETHA) surpassed $1 billion in cumulative net inflows, making it the first among 11 issuers to reach this milestone. However, Ethereum ETFs have recorded cumulative net outflows of over $440 million as of August 21.
Ethereum Rainbow Chart prediction
The Ethereum Rainbow Chart has become a popular tool among traders and investors, offering a visual representation of potential price trajectories for Ethereum. This logarithmic growth chart maps Ethereum’s historical price data against a color-coded band representing different price zones, ranging from “Fire Sale” at the lowest end to “Maximum Bubble Territory” at the highest.
The chart is designed to help investors gauge Ethereum’s current price relative to its historical performance and suggest potential future price targets.
Currently, the Rainbow Chart places Ethereum in the “Still Cheap” band, suggesting that the cryptocurrency is trading between $2,040.3 and $2,917.24. This range implies that ETH is perceived as undervalued relative to its potential future growth, making it an appealing buy for long-term investors.
Ethereum Rainbow Chart prediction. Source: Blockchain Center
Ethereum 2025 price prediction
By January 1, 2025, Ethereum’s price could fall into several key zones. At the lowest end, the “Fire Sale” range, between $762.63 and $1,038.49, would signal a prime buying opportunity driven by market distress. Just above this, the “Undervalued” band, ranging from $1,038.49 to $1,443.4, would suggest that Ethereum is priced below its intrinsic value, appealing to conservative investors.
As the price rises, it enters the “Accumulate” range, from $1,443.4 to $2,040.3, where Ethereum would be seen as reasonably priced, making it attractive for gradual investment. Continuing upward, Ethereum would move into the “Steady” zone, between $2,917.24 and $4,212.85, which is considered relatively valued with expectations of moderate, stable growth.
Further appreciation could place Ethereum in the “HODL!” zone, with prices ranging from $4,212.85 to $6,128.45, where long-term holders might see their patience rewarded as market adoption grows. If the price climbs higher, it could reach the “Is This The Flippening?” range, between $6,128.45 and $8,935.32, hinting that Ethereum might challenge Bitcoin’s market capitalization.
Beyond this level lies the “But have we earned it?” zone, where Ethereum trades between $8,935.32 and $12,798.28, signaling speculative territory with concerns about overvaluation. At the top is the “Maximum Bubble Territory,” where prices soar between $12,798.28 and $18,274.62, indicating a speculative bubble driven by market exuberance, often a precursor to a sharp correction.
It’s worth noting that the prospects of Ethereum reaching the levels presented by the chart will depend heavily on the overall crypto market sentiment.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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