Ethereum has dipped belowΒ $4,500Β after its recent rally, but theΒ Ethereum Rainbow ChartΒ suggests significantly higher prices could still be in play. This unique valuation tool helps investors spot long-term opportunities beyond short-term volatility.

Understanding the Rainbow Bands
The chart divides ETH’s price into nine colorful valuation zones:
π₯ Fire Sale: $899-$1,217 (Strong Buy)
π§ Undervalued: $1,217-$1,680
π¨ Accumulate: $1,680-$2,359
π© Still Cheap: $2,359-$3,355
π¦ Steady (Fair Value): $3,355-$4,832 β Current zone
πͺ HODL!: $4,832-$7,015
π« Is this The Flippening?: $7,015-$10,200
β¬ But have we earned it?: $10,200-$14,581
π₯ Maximum Bubble Territory: $14,581-$20,778

At $4,442, ETH sits comfortably in the “Steady” range – neither overbought nor oversold by historical standards.
Technical Indicators Remain Bullish
β’ 50-day SMA ($3,413) and 200-day SMA ($2,596) show strong uptrend
β’ RSI at 66.86 – Healthy buying pressure (not yet overbought)
β’ Weekly gain of 4.5% despite recent dip

What’s Next for Ethereum?
The chart suggests two potential paths:
- Conservative Scenario:Β Holds $3,355-$4,832 through August
- Bullish Breakout:Β Could test $7,015 “HODL!” zone if momentum returns
While short-term pullbacks are normal, the overall technical picture confirms Ethereum’s bull market remains intact.