Despite facing challenges in surpassing the psychological barrier of $2,500, Ethereum (ETH) might witness a similar outlook by the end of the year. This is suggested by BlockchainCenter’s Ethereum rainbow price chart, reflecting momentum in the broader cryptocurrency market.
In particular, specific cryptocurrency traders and investors leverage Ethereum’s rainbow chart to analyze the historical trends of the second-largest cryptocurrency by market capitalization. They examine its relationship with various moving averages (MAs) and identify patterns that can inform more informed investment decisions.
The chart indicates that Ethereum is presently situated in the ‘Still Cheap’ phase, represented by the light green color. It fluctuates within the range of $1,597 to $2,306, residing below the ‘Hold’ yellow zone spanning $2,302 to $3,342, based on information observed by Finbold on December 27.
Projection for January 1, 2024
As for the start of the following year, no significant fluctuations in price are expected, as Ethereum is treading the fine line between the ‘Still Cheap’ and ‘Hold’ territories, which both present a buying opportunity for investors.
However, an alternative Ethereum Rainbow Chart tool created by CoinCodex projects that, under identical circumstances, the asset price could linger at approximately $3,033 per token should ETH stay within the ‘HODL’ zone in January 2024.
Ethereum price analysis
At the time of press, Ethereum is being traded at $2,247.29; this reflects a 0.40% increase for the day, coupled with an upside of 1.75% over the past week and a 9.83% gain on its monthly chart.
Concurrently, technical indicators for Ethereum, sourced from TradingView, reflect bullish sentiments. A summary of the indicators indicates a ‘buy’ rating at 11, with moving averages signaling a ‘buy’ at 9. Oscillators tend toward a ‘neutral’ rating of 8.
The trajectory of ETH within either of the two rainbow chart patterns will hinge on ongoing developments within the Ethereum network, coupled with the overall sentiment in the broader cryptocurrency and macroeconomic context.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
Source: https://finbold.com/ethereum-rainbow-chart-predicts-eth-price-for-jan-1-2024/