Ethereum (ETH) is aiming to reach a new all-time high, a move that investors have been anticipating following the launch of the cryptocurrency’s spot exchange-traded fund (ETF).
Currently, the second-largest cryptocurrency by market cap is showing short-term volatility as it attempts to break through the crucial $3,000 resistance zone. Despite positive developments such as the ETF launch, Ethereum’s market dominance has been declining in recent months compared to rivals such as Bitcoin (BTC).
Over the past 30 days, Ethereum has fallen by over 23% as it attempts to recover from its monthly low of around $2,100. ETH was trading at $2,631 at press time and has gained almost 1% over the past 24 hours.
In particular, investors are closely watching the ETF as a potential catalyst for new highs. This came after BlackRock’s (NYSE: BLK) iShares Ethereum Trust (ETHA) surpassed cumulative net inflows of over $1 billion, becoming the first of 11 issuers to reach this milestone. However, Ethereum ETFs have seen cumulative net outflows of over $440 million through August 21.
Ethereum Rainbow Chart Prediction
The Ethereum Rainbow Chart has become a popular tool among traders and investors, providing a visual representation of potential price trajectories for Ethereum. This logarithmic growth chart maps Ethereum’s historical price data with a color-coded band representing different price zones, from “Fire Sell” at the lowest to “Maximum Bubble Territory” at the highest.
The chart is intended to help investors assess Ethereum’s current price compared to its historical performance and suggest possible future price targets.
Currently, Rainbow Chart places Ethereum in the “Still Cheap” category, suggesting that the cryptocurrency is trading between $2,040.3 and $2,917.24. This range means that ETH is considered undervalued relative to its potential future growth, making it an attractive buy for long-term investors.
Ethereum Price Prediction 2025
Between now and January 1, 2025, Ethereum’s price could fall into several key zones. At the low end, the “Fire Sale” zone between $762.63 and $1,038.49 would signal a prime buying opportunity due to market distress. Just above, the “Undervalued” zone between $1,038.49 and $1,443.4 would suggest Ethereum is valued below its intrinsic value, appealing to conservative investors.
If the price rises, it will reach the “Accumulate” zone of $1,443.4 to $2,040.3, where Ethereum is considered to be reasonably priced and attractive for gradual investment. If it continues to move higher, Ethereum would enter the “Steady” zone between $2,917.24 and $4,212.85, which is considered relatively high and expects moderate, stable growth.
Further appreciation could take Ethereum into the “HODL!” zone, with prices between $4,212.85 and $6,128.45, where the patience of long-term holders could be rewarded as market adoption increases. If the price continues to rise, it could reach the “Is This The Flippening?” range between $6,128.45 and $8,935.32, suggesting Ethereum could challenge Bitcoin’s market cap.
Beyond this level lies the “But do we deserve it?” zone, where Ethereum trades between $8,935.32 and $12,798.28, indicating speculative territory with concerns about overvaluation. Above is the “Maximum Bubble Territory,” where prices rise between $12,798.28 and $18,274.62, indicating a speculative bubble fueled by market exuberance and often a harbinger of a sharp correction.
It is worth noting that the prospects of Ethereum reaching the levels shown in the chart depend heavily on the general sentiment in the crypto market.
Disclaimer: The content of this website does not constitute investment advice. Investments are speculative. When you invest, your capital is at risk.
