Ethereum
Ethereum Rainbow Chart Predicts ETH Price for Late 2024
After surging above $3,000 for most of 2024 and even briefly surging above $4,000 in March as part of a cryptocurrency market rise, Ethereum (ETH) was hit by the recent decline, with its price briefly falling below $3,000 on July 8.
Despite this, ETH remains in the green so far in 2024 as it has added 32.34% to its value on a year-to-date (YTD) basis.
As of July 11, the previous 24 hours brought gains of 0.75%, helping to reverse last week’s damaging loss of 1.86%.
Ethereum 24-hour price chart. Source: Finbold
In the current atmosphere of fear and unpredictability, Ethereum’s rainbow chart, which uses a logarithmic growth curve to reflect investor sentiment at different price levels, can provide vital insights into Ethereum’s potential future movements in the crypto walk.
Ethereum Rainbow Chart 2024
The Ethereum Rainbow chart consists of nine distinct color-coded zones, each symbolizing a specific price range and corresponding market sentiment. These zones range from “Fire Sale,” indicating extreme bearish sentiment at the lowest prices, to “Maximum Bubble Territory,” suggesting that the cryptocurrency’s price has climbed to unsustainable levels and is likely to decline.
Currently, ETH is in the “stable” zone, which can be described as a neutral zone where neither buying nor selling pressure dominates the sentiment. The best move for traders is to wait and see which way the price moves on the chart.
Ethereum’s Rainbow Chart Predicts Price for End of 2024
The rainbow chart illustrates Ethereum’s historical performance in the context of market sentiment and provides insight into potential future prices of the world’s second-largest cryptocurrency.
If ETH falls below $1,037.78 by the end of December, the current bull market is over and a crypto winter is approaching. Conversely, trading above $8,930.22 would indicate that Ethereum is entering bubble territory, with consistent closes above $12,791.09 all but confirming a major correction is imminent.
The rainbow chart also shows that ETH would be most stable in late 2024 if it remained in the $2,915.49 to $4,210.36 range, known as the “HODL” zone. It would remain relatively stable between $4,210.36 and $6,124.88, the “Is This the Turnaround?” range, although investors should remain cautious.
Additionally, the tool suggests that late 2024 would be a good time to buy Ethereum if it is trading between $1,442.45 and $2,039.02, which is the “Accumulate” zone. Prices up to $2,915.49 are also considered relatively cheap.
Disclaimer: The content of this site should not be considered investment advice. Investing is a speculative activity. When you invest, your capital is at risk.