Ethereum's Technical Setup Points to Sustained Bullish Pressure Amid Rainbow Chart Valuation Models

Ethereum’s current price action reveals a cryptocurrency caught between technical strength and valuation equilibrium. Trading near $3,110, ETH has exhibited modest upside momentum over the week, while its positioning within the ETH Rainbow Chart suggests fair value territory across near-term horizons.

Technical Indicators Signal Ongoing Buying Interest

From a technical perspective, Ethereum demonstrates considerable bullish structure. The asset’s 50-day Simple Moving Average stands significantly below current trading levels, with the 200-day average even further back, confirming a sustained uptrend that has established higher lows and higher highs over extended timeframes. The 14-day Relative Strength Index registers at 66.86, indicating strong accumulation pressure among buyers and proximity to overbought conditions around the 70 threshold.

This technical configuration suggests additional upside remains feasible, though the proximity to overbought extremes warrants monitoring for potential pullbacks or consolidation phases. Price movements may face headwinds if buying momentum accelerates excessively.

Understanding the ETH Rainbow Chart Framework

The Rainbow Chart model applies logarithmic scaling to historical valuation bands, creating a framework that helps market participants identify whether assets trade at premiums or discounts relative to long-term valuation ranges. Rather than predicting short-term directional moves, the model functions as a valuation gauge.

The framework divides Ethereum into nine distinct zones. At the lowest end sits the ‘Fire Sale’ band ($899–$1,217), followed by progressively higher zones: ‘Undervalued’ ($1,217–$1,680), ‘Accumulate’ ($1,680–$2,359), ‘Still Cheap’ ($2,359–$3,355), and ‘Steady’ ($3,355–$4,832). The ‘Steady’ zone represents consensus fair value across market cycles.

Above fair value, the model defines ‘HODL!’ territory ($4,832–$7,015), ‘Is this The Flippening?’ ($7,015–$10,200), ‘But have we earned it?’ ($10,200–$14,581), and finally ‘Maximum Bubble Territory’ ($14,581–$20,778).

Current Positioning and Implications

With Ethereum trading around $3,110, the asset sits comfortably within the fair value band established by the Rainbow Chart. This positioning suggests the market has priced Ethereum rationally according to historical valuation metrics. Should the cryptocurrency maintain this zone through coming weeks, the model implies consolidation within a $3,355–$4,832 range represents equilibrium pricing.

The combination of strong technical momentum and fair-value positioning creates an environment where Ethereum offers balanced risk-reward dynamics—neither oversold enough to signal capitulation nor overbought enough to signal euphoria.

24-hour performance: +0.19% | 7-day performance: -1.89%