- Ethereum is here with a graphical representation to keep track of the investments.
- Several factors influence cryptocurrencies.
Rainbows symbolize bright happiness and rebirth. Within cryptocurrencies, the rainbow symbol has developed a new meaning. The crypto chart, shaped like a rainbow, has been used to showcase the value of a cryptocurrency throughout history. The Ethereum chart is a very well-known chart. This chart is a graphical representation of the economic value of Ethereum over time; it represents the times it was over-bought and under-bought. The Ethereum Rainbow chart is a logarithmic chart showcasing the long-term value of the cryptocurrency.
Logarithmic Chart
People are usually aware of the linear charts all around. In a logarithmic chart, the distance between the values is not the same. These charts are mostly used when values are not equal. The logarithmic chart uses a logarithmic scale, not the most commonly used linear scale. With the help of a logarithmic scale, while the end value could be the same as the linear value, the spaces between the values are different.
Ethereum Chart
- Dark Red
The top layer of this numerical rainbow is topped with a dark red color, which represents the times when Ethereum was overvalued and should be sold.
- Red
If the graph enters the red color line, which is the top second layer, the ETH is overvalued and overbought.
- Dark Orange
This is where the buyers dominate the market.
- Light Orange
If buyers have momentum and power, the graph reaches dark orange. This way, ETH might be priced correctly. Light orange is the color for a balanced market where the value of Ethereum is fair. The price should be determined by technological analysis.
- Yellow
If the price action is in the yellow, it means that the market is balanced, with a possible break to the upside. Investors should hold their Ethereum in the yellow.
- Light Green
When Ethereum could be bought for a good price, the chart reached a light green color.
- Green
Green represents the time when ETH is undervalued and buying a position is a good idea.
- Light Blue
The light blue symbolizes a point in price action where the value of Ethereum is significantly undervalued. Based on the price history of Ethereum, one can see that when the price action dips to the blueish area, it is followed by a significant bull run.
- Dark Blue
The dark blue color is made as a line at the very bottom of the chart, symbolizing a dangerous area where ETH should not reach. It is for when and if the value of ETH becomes highly undervalued and none of its position is bought.
