Ethereum Rainbow Chart predicts ETH price for January 1, 2026

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 ETHs 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.