The Ethereum Rainbow chart predicts that the second-largest cryptocurrency by market capitalization is likely to be traded within its current range as of June 1st.
In particular, Ethereum (ETH) is one of the top-performing assets in the ongoing market cycle, splitting from a long-term integration phase of less than $2,000.
The gathering is driven primarily by broader market sentiment and major network upgrades. As of press time, ETH had grown by 2.93% over the past 24 hours, trading at $2,565 at 6.5% over the past week.
However, it may slow down the momentum in the short term. In this case, Ethereum’s 14-day relative strength index (RSI) stands at 62.91, indicating that the assets are approaching the territory where they were acquired.
Still, the simple moving average (SMA) for both the 50-day ($2,024.08) and the 200-day ($2,479.18) is below current prices and strengthening the bullish outlook.
Ethereum price forecast
According to Ethereum Rainbow Chart, ETH is expected to trade between $1,588.19 and $2,235.45 on June 1, and is placed in a “still cheap” band. This range suggests that despite recent price increases, Ethereum is undervalued compared to its historic growth curve.
In particular, the Rainbow Chart is an emotionally-based, non-scientific model that overturns Ethereum’s price history with a logarithmic growth curve. Rather than relying on traditional technical indicators, we use color-coded bands to explain market sentiment across different levels of evaluation.
The red band “Maximum Bubble Area” at the top of the chart ranges from $13,891.96 to $19,811.01. Below that is “But did we win it?” ($9,711.26–$13,891.96) followed by “Is this flipping?” ($6,671.98–$9,711.26), “Hodl!” ($4,592.33–$6,671.98), and “Stable…” ($3,185.43–$4,592.33).
The “still cheap” ranges range from $2,235.45 to $3,185.43 just above the “accumulation” zone ($1,588.19–$2,235.45). Below that are “undervalued” ($1,147.53–$1,588.19) and “Fire Sale” ($845.94–$1,147.53).
Ethereum’s current price trajectory supports the view that it will remain within or near the “still cheap” band in early June. The ETH is rebounding, but remains far from the top of the chart and the more euphoric evaluation zone.
The Rainbow Chart offers an attractive visual narrative of Ethereum’s historical price action, but it is not a predictive tool. Instead, it serves as a simplified framework for contextualizing long-term evaluation trends.
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