Is Ethereum expected to challenge 18,000 by the end of the year? Analysts show rainbow charts: the most reasonable price is at this level

Ethereum Rebound recently

The king of altcoins Ethereum (ETH) has recently shown strong market momentum. According to CoinGecko data, Ethereum ($ETH) has risen by 14% in the past 7 days, successfully breaking through the resistance level of $3,500 and reaching above $3,600.

Image source: CoinGecko Ethereum price chart

At the time of writing, the Ethereum transaction price is $3,589, up more than 1% in the past 24 hours.

Ethereum’s strong Rebound in the past 2 days has restored confidence to many AltCoin investors. Renowned on-chain analyst Ali Martinez believes that this upsurge may imply the onset of the so-called ‘AltCoin season’. If Ethereum can stay stable on this foundation, there is a chance to challenge the price range of $6,000 in the short term.

Rainbow Interpretation: The Potential Value of Ethereum

When it comes to future price predictions, the Ethereum Rainbow Chart has become a focus of attention for many investors to follow. This tool mainly uses ‘logarithmic scales’ to visually present the historical price data of Ethereum and color code it based on different price ranges.

As of now, the rainbow chart shows Ethereum in a ‘stable’ area, with prices ranging from $2,854 to $4,123. This indicates that Ethereum is currently in a relatively healthy price range, neither significantly overheated nor too cold. However, if it can break through this range, Ethereum may enter a higher ‘HODL’ or ‘reversal’ zone.

Image source: coinblock Ethereum Rainbow Chart

According to the rainbow chart, Ethereum’s “maximum bubble zone” falls between $12,783.90 and $18,254.39, indicating the price levels Ethereum may reach in a market sentiment that is excessively high and in an extreme fear of missing out situation.

In addition, the ‘Reversal’ range falls between $6,121.27 and $8,925.12, representing the reasonable range of Ethereum prices breaking through in the Bull Market; while the ‘HODL’ range falls between $4,207.87 and $6,121.32, representing the stable growth price of Ethereum in a healthy market.

It should be noted that below the ‘stable’ area, there are also ‘increase the position’ and ‘undervalued’ areas. If the market faces severe adjustments again, the ‘increase the position’ and ‘undervalued’ areas are respectively $1,441.41 to $2,037.75, and $1,037.07 to $1,441.51.

What can be confirmed is that Ethereum’s recent strong surge has declared that the potential of the king of altcoins, Bull Market, still exists, and in the next few months, whether Ethereum ($ETH) can break through the ‘stable’ area near $4,000 and successfully enter the ‘reversal’ area will be a crucial indicator of whether it can challenge higher targets.

Disclaimer: The market is risky, and investment should be cautious. Analyst opinions are for reference only. Users should refer to more diverse indicators to determine whether to invest and consider whether any opinions, perspectives, or conclusions in this article are in line with their specific situation. Invest at your own risk.

‘Ethereum is expected to challenge 18000 at the end of the year? Analyst shows rainbow chart: the most reasonable price is at this point.’ This article was first published in ‘encryption city’.