As Ethereum holds above the $3,000 level, projections from the Rainbow Chart suggest that by January 1, 2026, ETH is likely to trade below levels associated with market euphoria.
By press time, the second-largest cryptocurrency by market capitalization was trading at $3,155, up about 1.7% over the past 24 hours. On a weekly basis, Ethereum has gained less than 1%.
Ethereum price prediction
For the projection, the Ethereum Rainbow Chart outlined a broad range of potential price outcomes for ETH on January 1, based on long-term historical trends and market sentiment.
Notably, the Ethereum Rainbow Chart applies a logarithmic regression to ETH’s historical price data to create colour-coded valuation and sentiment bands, offering a long-term framework to gauge whether Ethereum is undervalued, fairly priced, or overheated rather than a precise price forecast.
At the lower end of the chart, the ‘Fire Sale’ band projects a January 1, 2026, price range of approximately $974.60 to $1,315.18, a zone associated with extreme bearish sentiment and capitulation.
Above this, the ‘Undervalued’ band spans roughly $1,315.18 to $1,809.69, followed by the Accumulate range between about $1,809.69 and $2,532.49, indicating levels where long-term investors historically begin building positions.
The ‘Still Cheap’ band, which currently contains ETH’s market price, ranges from approximately $2,532.49 to $3,591.97. A sustained move above this area would place Ethereum into the ‘Steady’ band, projected to range from about $3,591.97 to $5,166.43 by January 1. This zone reflects a market in balance, where growth continues without excessive speculation.
More optimistic scenarios appear at higher levels on the chart. The ‘HODL!’ band extends from about $6,166.43 to $7,493, signalling strong bullish conviction. Above that, ‘Is This the Flippening?’ range spans approximately $7,493 to $10,881, pointing to a period of heightened enthusiasm and rapid price appreciation.
At the speculative extreme, the ‘But have we earned it?’ band ranges from about $10,881 to $15,538.20, while the ‘Maximum Bubble Territory’ band projects prices between roughly $15,538.20 and $22,120.14, levels historically associated with late-cycle excess and elevated risk.
Ideal Ethereum price of Jan 1, 2026
Based on Ethereum’s current placement in the ‘Still Cheap’ zone, the Rainbow Chart suggests a plausible price range for January 1, 2026, of roughly $2,500 to $5,200, assuming a continuation of gradual market expansion.
At the same time, a move into higher bands would depend on a sharp acceleration in demand, network usage, and broader crypto market momentum. This comes as Ethereum continues to see increasing adoption from major institutions.
For instance, as reported by Finbold, American banking giant JPMorgan announced the launch of its first-ever tokenised money market fund on the Ethereum blockchain, thereby drawing increased attention to the asset.
Featured image via Shutterstock
