Insights from the Ethereum (ETH) Rainbow Chart suggest that the second-largest cryptocurrency by market capitalization is likely to gain even more momentum on August 1st.
At the time of reporting, Ethereum had traded around $3,700, placing it within the “Stable…” zone of the chart.
The Rainbow Chart is a long-term valuation model that uses log curves and color bands to explain Ethereum’s historical price sentiment. This helps you measure whether your assets are undervalued or overheated without predicting short-term movements.
On August 1, 2025, the model estimates that Ethereum can trade between $4,752.48 and $6,901.15, which corresponds to “HODL!”. zone. However, based on Ethereum’s current position and price momentum, the assets could remain in the “stable…” zone for the next few days.
The lowest band on the chart is labelled “fire” ($881.52 to $1,193.99), indicating an extreme underestimation. This is followed by “undervaluation” ($1,193.99 to $1,649.69), followed by “accumulation” ($1,649.69 to $2,148.10).
Above that are “still cheap” bands ($2,148.10 to $3,298.74). The next zone is “Stable…” ($3,298.74 to $4,752.48), with Ethereum currently sitting, showing stable growth and reduced volatility.
The “Hoddle!” zone ranges from $4,752.48 to $6,901.15, with long-term holders usually strengthening their convictions. On top of that, you’ll see, “Is this flipping?” ($6,901.15 to $10,038.05), marks the start of speculation and hype.
“But did we win that?” The top band, “Maximum Bubble Territory,” ranges from $10,038.05 to $14,352.17, spans from $14,352.17 to $20,456.93, reflecting the vibrancy of the peak.
Ethereum price analysis
At the time of reporting, Ethereum had grown 0.47% over the last 24 hours, trading at $3,791. In the weekly time frame, assets increased by approximately 2.5%.
Ethereum’s recent bullish rally appears to be targeting the $4,000 level, but is supported by key technical metrics. The 50-day Simple Moving Average (SMA) is $2,836.31 and the 200-day SMA is $2,404.22.
The current price and both SMAS gaps show a sustained bullish trend, with Ethereum well above both the short-term and long-term averages.
However, the 14-day relative strength index (RSI) is 80.01, which is a level that indicates overbought conditions. This does not necessarily indicate an imminent reversal, but it does suggest that assets may be responsible for short-term pullbacks or integrations.
Featured Images via ShutterStock