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

Ethereum trades near $3,900 as analysts say it remains in the “Still Cheap” zone, with exchange reserves dropping to 15.9M ETH.

  Business   Oct 23, 2025   0   1  Add to Reading List
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 hours. The past week has seen a 3% pullback.

Despite the dip, market watchers say conditions remain favorable, backed by long-term chart structures and exchange activity.

Ethereum 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” zone. This band sits below the historical “HODL” and “Take Profit” areas, which have marked overheated conditions in previous cycles.

Merlijn wrote,

“Every major bottom has the color blue. Every 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.

Ethereum (ETH) price chart
Source: Merlijn The Trader/X

Breakout Confirmed After Two Years of Rejections

Ethereum recently broke above a resistance level that had held since November 2021. After facing multiple rejections in past cycles, ETH closed above the trendline and has since returned to test it from above. That retest has so far acted as support. Said EtherNasyonaL,