In the realm of cryptocurrencies, Ethereum has consistently maintained its leadership following Bitcoin. At the beginning of 2023, ETH hit a low but then experienced a remarkable rise, surpassing $4,000 in March 2024. Subsequently, the price fell below $3,000. Following the Ethereum ETF news, the price rose to $3,900 but then adjusted to market conditions, falling below $3,000 again. Currently, ETH is above $3,000, and the Rainbow Chart, considered one of the more entertaining charts, shows a significant outlook.
Ethereum Rainbow Chart
To briefly explain what the Ethereum Rainbow Chart is, it can be defined as an indicator showing nine different colored regions that depict distinct price ranges. The lowest price level is termed the “Fire Sale” region, indicating an extreme drop, while the unsustainable region, where the price is excessively high and likely to fall, is called the “Maximum Bubble Territory.”
Looking at Ethereum’s current state, it appears that stability is being maintained. Investors generally prefer to wait in such situations and observe the price direction before making purchases.
What Will Be Ethereum’s Price?
Although the Rainbow Chart is considered an entertaining chart due to its colors, it provides insights into Ethereum’s historical market appearance and opens the door for predictions about its future outlook.
According to the chart, a possible drop below $1,037.78 by the end of December could end the bull market and usher the crypto world into a winter. Conversely, a move above $8,930 could elevate Ethereum into the bubble territory and potentially pave the way for a move above $12,791.
Looking at the Rainbow Chart, another perspective shows that if ETH remains in the ‘HODL’ region between $2,915.49 and $4,210.36, it could be interpreted as a sign of stability by the end of 2024.
Despite the cautious price movements among investors due to the current market situation, ETH could also rise to the region between $4,210.36 and $6,124.88.
