The Ethereum Rainbow Chart is forecasting that the second-largest cryptocurrency by market capitalization is more likely to commerce inside its present vary as of June 1.
Notably, Ethereum (ETH) has been one of many top-performing belongings within the ongoing market cycle, having damaged out of a protracted consolidation section under $2,000.
This rally has been primarily pushed by broader market sentiment and key community upgrades. As of press time, ETH was buying and selling at $2,565, up 2.93% within the final 24 hours and 6.5% over the previous week.
Nevertheless, short-term momentum could also be slowing. On this case, Ethereum’s 14-day Relative Power Index (RSI) stands at 62.91, indicating the asset is nearing overbought territory.
Nonetheless, each the 50-day ($2,024.08) and 200-day ($2,479.18) easy shifting averages (SMA) stay under the present worth, reinforcing a bullish outlook.
Ethereum worth prediction
In keeping with the Ethereum Rainbow Chart, ETH is projected to commerce between $1,588.19 and $2,235.45 on June 1, inserting it inside the “Nonetheless Low cost” band. This vary means that regardless of latest worth positive aspects, Ethereum stays undervalued relative to its historic development curve.
Notably, the Rainbow Chart is a sentiment-based, non-scientific mannequin that overlays Ethereum’s worth historical past on a logarithmic development curve. Somewhat than counting on conventional technical indicators, it makes use of color-coded bands for example market sentiment throughout completely different valuation ranges.
On the high of the chart, the crimson band, “Most Bubble Territory,” spans $13,891.96 to $19,811.01. Under it lies “However have we earned it?” ($9,711.26–$13,891.96), adopted by “Is that this The Flippening?” ($6,671.98–$9,711.26), “HODL!” ($4,592.33–$6,671.98), and “Regular…” ($3,185.43–$4,592.33).
The “Nonetheless Low cost” vary extends from $2,235.45 to $3,185.43, simply above the “Accumulate” zone ($1,588.19–$2,235.45). Beneath which can be “Undervalued” ($1,147.53–$1,588.19) and “Fireplace Sale” ($845.94–$1,147.53).
Ethereum’s present worth trajectory helps the view that it’s going to stay inside or close to the “Nonetheless Low cost” band in early June. Whereas ETH has rebounded, it stays removed from the chart’s higher, extra euphoric valuation zones.
Although the Rainbow Chart presents a compelling visible narrative of Ethereum’s historic worth conduct, it’s not a predictive device. As a substitute, it serves as a simplified framework to contextualize long-term valuation tendencies.
Featured picture through Shutterstock
