The ETH Rainbow Chart: When mathematical analysis lights the way of the market 📊

The Ethereum Rainbow Chart has become a fascinating tool for those trying to navigate the cryptocurrency markets. It’s not a magic oracle or crystal ball, but a sophisticated mathematical model that uses historical ETH data to create a valuation map. We analyze how this visualization can help you better understand where Ethereum’s current price stands.

Today, ETH is around $2,030 USD, placing the token in a zone of interest for technical analysts. But what does the Rainbow Chart really tell us about this position?

What is the Rainbow Chart and how does it work for Ethereum?

The Rainbow Chart doesn’t provide an exact price, but valuation ranges that serve as historical reference levels. Each “ring” of the chart represents a price zone based on Ethereum’s historical patterns. The model divides the market into different states, from the most conservative to highly speculative zones.

What’s interesting about this tool is that it transforms raw data into an intuitive visualization. It’s not just a pretty chart; it’s a mathematical representation of how ETH has behaved throughout its history. For many analysts, it’s the compass they need when the market generates more noise than clear signals.

Rainbow Chart levels: From stability to the point of no return

The Rainbow Chart structures its levels around key market concepts. At the lowest end is the “strong buy” region, where prices are historically accessible. As we ascend the chart, we reach levels of greater uncertainty.

The classic ranges for Ethereum on the Rainbow Chart are between $4,915 and $14,819 USD across different cycles. These levels act as psychological reference points for traders. The mid-range—between $7,132 and $10,370—represents the threshold where many investors start to make more cautious decisions. Above this, in the $10,370 to $14,819 zone, the market enters territories that have historically preceded significant corrections.

RSI and moving averages: Confirming signals of change in ETH

Beyond the Rainbow Chart, other technical indicators offer complementary insights. The Relative Strength Index (RSI) measures recent price change magnitude to assess if the asset is overbought or oversold. Currently, Ethereum’s RSI remains in a neutral zone, suggesting there’s still potential room for upward movement without triggering technical alarms of immediate correction.

Moving averages also play a crucial role. When the price is above its historical averages, as it is now, it reinforces an upward trend. These technical confirmations increase confidence in analyses based on tools like the Rainbow Chart.

Ethereum’s current scenario: Where is ETH today?

As of February 2026, Ethereum is in an interesting position within its historical cycle. With ETH trading around $2,030, the token is within ranges that the Rainbow Chart would consider relatively accessible historically. This suggests there’s some margin before reaching zones that have historically been warning signs.

It’s important to note that the prices recorded by the Rainbow Chart are not static. Each market cycle redefines these levels. What was “expensive” in 2020 is “cheap” in 2026. This model constantly evolves with new data, keeping it relevant even years after its initial creation.

Rainbow Chart as a compass: A tool for informed decisions

Ultimately, the Rainbow Chart is a perspective tool rather than a prediction. It won’t tell you exactly when to buy or sell, but it will show you where you stand in Ethereum’s historical territory. For the average investor, this is valuable: understanding whether the current price presents an opportunity, a zone of caution, or a high-risk moment.

Combining the Rainbow Chart, RSI, and moving averages creates a solid analytical framework. However, no model is infallible. The cryptocurrency market remains volatile and surprising. What these indicators offer is structured information to make more conscious decisions.

For those following ETH in 2026, the conclusion is clear: technical data and tools like the Rainbow Chart are allies in reducing uncertainty, not eliminating it. Information, as always in the crypto world, is your best defense. ⚡