The Ethereum (ETH) market is showing signs of recovery following a recent downturn, with the Ethereum Rainbow Chart providing insights into potential price movements by the end of February 2026. This chart visualizes ETH”s historical price patterns alongside logarithmic growth curves, categorizing future valuations into color-coded bands that reflect varying market sentiments.
Currently, Ethereum has regained its footing in the $2,000 support zone, trading at $2,009, marking an increase of over 4% in the last 24 hours. However, the weekly performance reveals a more concerning picture, with the asset down by more than 13%.
The Rainbow Chart”s projections for February 28, 2026, indicate that Ethereum could fluctuate between approximately $1,011 and $22,767, heavily influenced by prevailing market conditions. The upper limit falls within the “Maximum Bubble Territory” band, which spans from $15,999.66 to $22,766.71, indicating a period of extreme speculative behavior and significant correction risks.
Just below that, the “But have we “earned it?”” band ranges from $11,209.24 to $15,999.66, suggesting a phase where price increases may outpace underlying fundamentals. The next significant zone, termed “Is this the “Flippening?””, covers $7,723.72 to $11,209.24, and is often associated with a strong bull market where Ethereum could outperform the broader cryptocurrency market.
Mid-range valuations fall under the “HODL!” band, which spans from $5,327.93 to $7,723.72. This area has historically been linked to sustained uptrends, where long-term holders display confidence in the asset. Below this, the “Steady…” band, covering $3,706.51 to $5,327.93, suggests consistent growth in line with long-term adoption trends.
The “Still cheap” band, ranging from $2,616.41 to $3,706.51, indicates that Ethereum may be undervalued compared to its historical growth trajectory. The “Accumulate” zone, situated between $1,872.50 and $2,616.41, is typically viewed as an attractive entry point for long-term investors. Further down, the “Undervalued” band ranges from $1,362.90 to $1,872.50, with the lowest zone, “Fire Sale”, spanning from $1,011.34 to $1,362.90, historically associated with market capitulation phases.
As Ethereum trades near $2,000, it currently sits within the “Accumulate” band. Should the asset follow the Rainbow Chart”s median historical trajectory into late February 2026, it is plausible for it to transition into the “Steady…” or “HODL!” zones, suggesting a potential price range of approximately $4,000 to $6,000. However, factors such as stronger-than-expected adoption, heightened network activity, or a renewed bull cycle could propel Ethereum into higher valuation bands, while broader market weaknesses could keep it closer to the lower valuation ranges outlined by the model.
