Innovative technical analysis tool Ethereum Rainbow Chart predicts that by June 1, the second-largest market cap kriptovalyuta will trade at current levels.
In the current market cycle Ethereum (ETH) has emerged as one of the best performing assets, breaking out of a prolonged consolidation below $2000.
According to Ethereum Rainbow Chart, ETH is expected to trade between $1 and $1588, or the “Still Cheap” range, on June 2235. This suggests that despite the recent price increase, эфириум remains undervalued relative to its historical growth curve.
Ethereum Rainbow Chart. Source: Blockchain Center
The Rainbow Chart is a sentiment-based, non-scientific model that overlays price statistics on a logarithmic growth curve. The non-forecasting model uses colored bands to illustrate market sentiment at different valuation levels.
At the top of the chart, the red bar, “Maximum Bubble Territory,” spans the numbers $13891–$19,811. Below that is “But Do We Deserve It?” ($9711–$13,891), followed by “Is This a Coup?” ($6671–$9711), “HODL! » ($4592–$6671) and «Stable…» ($3185–$4592).
The Still Cheap range extends from $2235 to $3185, just above the Accumulation zone ($1588–$2235). Below that are Undervalued ($1147–$1588) and Sold ($845–$1147).
Ethereum’s current price trajectory supports the view that ETH will remain in or near the Still Cheap range in early June. And while ETH has recovered, it is far from the upper, more euphoric valuation zones on the chart.
