Analysis: ETH Faces Heightened Risk of Falling Below $2,000, Technical Pattern and On-Chain Indicators Point to $1,665–$1,725 Range

Odaily News Ethereum price faces further downside risks in February. Technical analysis shows that ETH has entered a typical "Inverse Cup and Handle" pattern breakdown phase. If the pattern fully plays out, the target price points to around $1,665, representing a potential downside of approximately 25% from current levels.

From the price action, ETH broke below the pattern's neckline around $2,960 in January. It subsequently rebounded to test this level but was rejected, failing to reclaim the 20-day and 50-day EMAs, which have now turned into clear overhead resistance. The convergence of multiple technical signals reinforces the expectation for a continued short-term decline.

On-chain data is also bearish. The MVRV extreme deviation zone indicates a potential downside target for ETH near $1,725, with further declines not ruled out. Historically, ETH has often only begun to bottom out and initiate a rebound after touching or falling below the lower band of the MVRV.

On a macro level, market risk appetite for crypto assets has declined. Some traders are concerned about a potential overall correction in 2026, similar to past "four-year cycles." Simultaneously, expectations of a potential "AI bubble" burst are prompting capital to flee high-risk assets, adding to ETH's downward pressure. (Cointelegraph)