What is the Ethereum Rainbow Chart?
The Ethereum Rainbow Chart is a long-term valuation tool that overlays a color-coded logarithmic regression band on top of ETH's historical price chart. The rainbow bands range from "Fire Sale" (deep blue, suggesting extreme undervaluation) to "Maximum Bubble Territory" (red, suggesting extreme overvaluation). By plotting where the current ETH price falls within these bands, investors can get a visual sense of whether Ethereum might be cheap, fairly valued, or expensive relative to its long-term growth trajectory.
The model is based on the observation that ETH's price growth over time roughly follows a logarithmic curve — rapid early growth that gradually slows as the asset matures. The rainbow bands are evenly spaced in log-space around this central regression line, creating a visual "rainbow" that expands over time.
How to Read the Ethereum Rainbow Chart
- 1
Find the current price on the chart
The dark line represents ETH's actual price. Look at where it sits within the rainbow bands today.
- 2
Identify the color band
Blue/green bands suggest ETH may be undervalued or at accumulation levels. Yellow/orange bands suggest fair value or increasing speculation. Red bands suggest the price may be overextended.
- 3
Use it as one data point, not a crystal ball
The Rainbow Chart is a simplified model. Always combine it with fundamental analysis, on-chain metrics, and your own risk tolerance before making investment decisions.
Rainbow Bands Explained
The bands are derived from a logarithmic regression of ETH's price history. Each band represents a fixed offset in log-space from the central trend line, meaning the dollar-width of each band grows exponentially over time — just as ETH's price range has expanded.
Why Use Our Ethereum Rainbow Chart?
Live price overlay
See ETH's current price plotted directly on the rainbow bands with data from professional-grade market feeds.
Full history since genesis
Chart covers ETH's entire price history from August 2015 to today, plus a forward projection of the rainbow bands.
No sign-up required
Completely free to use with no registration, no paywall, and no data limits.
Logarithmic scale
The Y-axis uses a log scale so early price action and recent price action are equally visible and meaningful.