Ethereum Still ‘Cheap’? Rainbow Chart Says the Rally Isn’t Over

Ethereum is trading at around $3,900 at press time, posting a slight gain over the last 24 ￰0￱ past week has seen a 3% ￰1￱ the dip, market watchers say conditions remain favorable, backed by long-term chart structures and exchange ￰2￱ Holds Green Zone in Rainbow Model The Ethereum Rainbow Chart, shared by Merlijn The Trader, places ETH in what the model labels as the “ Still Cheap ” ￰3￱ band sits below the historical “ HODL ” and “ Take Profit ” areas, which have marked overheated conditions in previous ￰4￱ wrote , “Every major bottom has the color ￰5￱ top is red… Right now? ETH is still in ‘Still Cheap’ territory.” According to the chart’s historical behavior, Ethereum is not showing signs of being overpriced and may have room to advance.) October 22, 2025 The move signals the end of a long consolidation ￰6￱ the price holds above the retest zone, the chart points to a possible continuation into higher ￰7￱ is trading just below a key level last reached before the 2020 rally.

Then, as now, the price stalled at resistance after months of sideways ￰8￱ Balances Fall as Supply Drops Off Market According to CryptoQuant, ETH reserves held on centralized exchanges have dropped to 15.9 million, down from over 20 million in late ￰9￱ steady decline reflects movement away from exchanges, often linked to long-term holding, staking, or cold storage.) October 22, 2025 Ted Pillows added , “Until ETH fully reclaims $4,100 level with strong institutional inflow, I think most pumps will be retraced.” Lennaert Snyder pointed to $3,740 as a recent bounce zone and marked $4,050 as resistance. Short-term moves remain uncertain, but the broader price structure continues to hold.