Ethereum’s Path to New Heights: Insights from the Rainbow Chart
As Ethereum (ETH) makes strides towards the significant $4,500 resistance, the Rainbow Chart provides valuable insights into the potential trading trajectory of the second-largest cryptocurrency by market capitalization at the start of October.
Current Market Overview
As of the latest market snapshot, Ethereum is trading at approximately $4,480, reflecting a slight increase of less than 0.1% over the past 24 hours. However, when observed over a week, Ethereum has experienced a correction of nearly 3%.
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Key Technical Indicators
Ethereum currently stands above crucial moving averages, specifically its 50-day simple moving average (SMA) of $4,298.89 and the 200-day SMA of $2,935.01. This positioning underscores a strong bullish trend, as Ethereum’s price is comfortably above important support levels, both in short-term and long-term contexts.
Relative Strength Index Analysis
The 14-day Relative Strength Index (RSI) is at 52.06, placing Ethereum in a neutral zone. This indicates that the cryptocurrency is neither overbought nor oversold, suggesting room for upward movement without an immediate risk of a technical correction.
Ethereum Price Prediction
The Ethereum Rainbow Chart, a long-term logarithmic model that tracks ETH’s historical price movements through color-coded zones, provides a forecast for October 1, 2025. This chart helps investors gauge whether Ethereum is undervalued, fairly priced, or in bubble territory, with each band reflecting market sentiment from extreme undervaluation to speculative excess.
Price Bands for October 2025
- Maximum Bubble Territory: $14,819.59 to $21,112.66
- But Have We Earned It? $10,370.14 to $14,819.59
- Is this The Flippening? $7,132.4 to $10,370.14
- HODL! $4,915.41 to $7,132.4
- Steady…: $3,414.11 to $4,915.41
- Still Cheap: $2,402.36 to $3,414.11
- Accumulate: $1,712.5 to $2,402.36
- Undervalued: $1,241.5 to $1,712.5
- Fire Sale: $917.97 to $1,241.5
Current Positioning and Future Prospects
As of September 21, 2025, Ethereum is trading at $4,480, positioning it within the “Steady…” band ranging from $3,414.11 to $4,915.41. This indicates that Ethereum is fairly valued in relation to its historical trends, with the potential to ascend into the “HODL!” range should bullish momentum carry forward into October.
While Ethereum’s current standing suggests stability, the cryptocurrency market’s dynamic nature requires ongoing monitoring to capitalize on emerging trends and opportunities.
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