The Rainbow Chart, a long-term valuation model for Ethereum (ETH), depicts a broad and structured price range through January 31, 2026, based on historical growth curves and logarithmic trend bands.
Notably, this chart maps Ethereum price trends across color-coded valuation zones designed to capture market sentiment rather than provide precise price predictions.
In fact, this model’s outlook comes as Ethereum trades just above the $3,000 support level. At the time of writing, the asset was valued at $3,102, down less than 0.1% in the past 24 hours, while on a weekly timeline, ETH was down over 2%.
At this price point, the second-largest cryptocurrency by market capitalization sits at the mid-lower end of the rainbow chart, an area typically associated with stories of accumulation and undervaluation.
From this starting point, the model outlines multiple valuation bands that ETH could occupy by the end of January 2026, depending on market momentum, adoption trends, and broader macro conditions.
Ethereum price prediction
The model is based on the “fire sale” band, which has historically been associated with extreme pessimism and capitulation, and extends from approximately $993 to $1,339 as of January 31, 2026, suggesting a sharp decline from current levels. The “undervalued” band just above it ranges from approximately $1,339 to $1,842, indicating that Ethereum is trading below its long-term trend as patient investors begin to re-enter.
The ‘accumulate’ band is expected to range from approximately $1,842 to $2,576, suggesting an improvement in sentiment due to the continued caution typical of the early stages of a recovery. The “still cheap” band above it ranges from approximately $2,576 to $3,650, indicating a gradual rise from current levels and a market recognizing the value of Ethereum without too much optimism.
The “Steady…” band, ranging from approximately $3,650 to $5,250, reflects a balanced situation where price appreciation closely follows Ethereum’s long-term adoption trend, suggesting a mature uptrend.
Above it is an orange “HODL!” The band ranges from approximately $5,250 to $7,612 and reflects strong bullish conviction from long-term holders and limited selling pressure. This is the dark orange color
Ethereum bullish phase
Flipping? This band lasts from approximately $7,612 to $11,050, indicating increased optimism and speculative interest in Ethereum’s growing market influence.
Near the top, a red-orange “But did we ‘earn’ it?” This band ranges from approximately $11,050 to $15,776, indicating overvaluation and sustainability concerns. The “Maximum Bubble Area” band caps the model at approximately $15,776 to $22,453 through January 31, 2026. This zone has historically been associated with euphoric situations and significant adjustments.
Given that Ethereum’s current price is $3,102, the model suggests that a moderate price increase is needed to stay within the “still cheap” or “stable…” range, while a rise into the higher orange and red zones would signal a strong bullish cycle.
Featured image via Shutterstock
