Ethereum News Today: Ethereum Rainbow Chart Predicts $4,752.48–$6,901.15 Range by August 1, 2025

The Ethereum Rainbow Chart model has generated renewed attention with its forecast for August 1, 2025, predicting the cryptocurrency could trade between $4,752.48 and $6,901.15 on that date. This range places Ethereum in the "HODL!" zone of the model, which categorizes market phases using historical price data and sentiment analysis [1]. As of press time, Ethereum (ETH) was trading at $3,791, situating it within the "Steady…" zone ($3,298.74–$4,752.48), indicating stable growth and reduced volatility compared to more speculative or undervalued periods.

The Rainbow Chart, a logarithmic valuation tool, divides price movements into color-coded bands to assess whether Ethereum is in accumulation, euphoria, or distribution phases. The "Fire Sale" ($881.52–$1,193.99) and "Undervalued" ($1,193.99–$1,649.69) zones represent historical buying opportunities, while "Maximum Bubble Territory" ($14,352.17–$20,456.93) reflects peak exuberance. The model’s August 2025 target assumes continued bullish momentum without major macroeconomic or regulatory disruptions [1].

Technical indicators reinforce Ethereum’s current trajectory. The 50-day simple moving average (SMA) is at $2,836.31, and the 200-day SMA at $2,404.22, both significantly below the current price. This divergence signals sustained bullish pressure. However, the 14-day RSI at 80.01 suggests overbought conditions, hinting at potential short-term consolidation or a pullback [1].

Market analysts have contextualized the forecast within Ethereum’s broader adoption trends. Upgrades like the proof-of-stake transition and the EIP-4844 (Cancun) upgrade have improved scalability, potentially attracting institutional investors. These developments could support the upper bound of the predicted range if they drive increased network activity. Conversely, prolonged bear markets or regulatory challenges could cap prices closer to the lower end [4].

The August 1, 2025, timeline also coincides with broader crypto market dynamics, including Bitcoin’s price movements and Federal Reserve policy. While Ethereum’s performance is less directly tied to Bitcoin’s halving event, cross-asset correlations could influence investor sentiment. Analysts caution that external shocks—such as macroeconomic volatility or regulatory actions—could alter projected trajectories [3].

Competing models, including machine learning algorithms and on-chain analytics, have produced varied Ethereum forecasts. For example, another model emphasized $3,000 as a critical support level, highlighting the diversity of methodologies in crypto price prediction [5]. Investors are urged to consider multiple data sources, as uncertainties in market psychology and external factors remain significant variables [6].

The Rainbow Chart’s "HODL!" zone reflects cautious optimism about Ethereum’s long-term potential but stops short of guaranteeing a specific outcome. Actual performance will depend on real-world conditions, including institutional adoption, network upgrades, and macroeconomic stability. While the model provides a structured framework for evaluating market phases, it should be complemented by on-chain metrics, regulatory developments, and macroeconomic trends for a comprehensive outlook [1].

Sources:

[1] Finbold, “Ethereum Rainbow Chart predicts ETH price for August 1, 2025,” https://finbold.com/ethereum-rainbow-chart-predicts-eth-price-for-august-1-2025/

[2] FXEmpire, “the greatest investment Price Today - Live LAND to USD,” https://www.fxempire.com/crypto/the-greatest-investment

[3] FXEmpire, “There Will Be Signs Price Today,” https://www.fxempire.com/crypto/there-will-be-signs

[4] Finbold, “Machine learning algorithm predicts XRP price on August 1,” https://finbold.com/machine-learning-algorithm-predicts-xrp-price-on-august-1-2025/

[5] AInvest, “Bitcoin’s $15B Short Squeeze Risk Looms as $120K Threshold Nears,” https://www.ainvest.com/news/bitcoin-news-today-bitcoin-15b-short-squeeze-risk-looms-120k-threshold-nears-critical-level-2507/

[6] Bitget, “Bitcoin (BTC) Price Prediction,” https://www.bitget.com/price/bitcoin/price-prediction