According to the popular Ethereum Rainbow Chart, Ethereum (ETH) is expected to trade at current levels by June 1, 2025, suggesting the world’s second-largest cryptocurrency remains undervalued despite recent price growth.
The chart, which serves as a long-term technical analysis tool, indicates that ETH is likely to stay within the range of $1588 to $2235 — a zone labeled as “Still Cheap.” This projection reflects Ethereum’s historical growth trajectory, identifying market cycles and phases of overvaluation and undervaluation. Despite a strong recovery in 2025, ETH appears to be far from the so-called “bubble” territory.
Ethereum Breaks Out of Consolidation
In the current market cycle, Ethereum has shown remarkable strength. Earlier this year, it broke out of a prolonged consolidation phase below $2000, becoming one of the top-performing assets in the crypto market. This bullish breakout reignited investor interest and raised expectations for a potential move toward new all-time highs.
Yet, despite the momentum, the Ethereum Rainbow Chart shows that ETH is still trading at a discount when compared to previous market peaks. Many analysts interpret this as a sign that Ethereum may have more room to grow — especially as the network continues to evolve with upgrades, increased adoption, and stronger DeFi fundamentals.
What Is the Ethereum Rainbow Chart?
The Ethereum Rainbow Chart is a logarithmic growth model based on historical price trends. It segments price ranges into color-coded bands with labels like “Accumulate,” “Still Cheap,” “Hold,” and “Sell. Seriously, Sell!” — giving a visual narrative to ETH’s long-term valuation. While not meant for short-term trading, the chart helps investors recognize broader market conditions.
On June 1, the chart predicts Ethereum will stay in the “Still Cheap” zone, which implies that ETH is undervalued based on its historical growth pattern. This could provide an opportunity for long-term holders to accumulate more coins before a potential rise in valuation.
Undervalued — But for How Long?
Many investors now wonder whether this undervaluation phase is nearing its end. With ETH’s fundamentals strengthening and network activity increasing, some believe the next stage of price discovery is approaching. However, as always, the crypto market remains volatile and subject to macroeconomic shifts.
Still, the Rainbow Chart offers a rare long-term perspective, reminding investors not to lose sight of Ethereum’s big-picture potential — even during periods of consolidation or moderate gains.
