Analysis: ETH Faces Increased Risk of Falling Below $2,000, Technical Patterns and On-Chain Indicators Point to $1,665–$1,725 Range
According to Odaily, 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 completes fully, the target price points to around $1,665, representing a potential downside of approximately 25% from current levels.
From a trend perspective, ETH broke below the pattern's neckline at around $2,960 in January, subsequently rebounded to test that level but was rejected, and failed 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 of a continued short-term decline.
On-chain data is also bearish. The MVRV extreme deviation zone indicates that ETH's potential downside target is near $1,725, with the possibility of an even deeper drop. Historically, ETH has often only begun to bottom out and initiate a rebound after touching or falling below the lower band of the MVRV indicator.
On a macro level, market risk appetite for crypto assets has declined. Some traders are concerned about a potential overall market correction in 2026, similar to past "four-year cycles." Simultaneously, expectations that the "AI bubble" might burst are prompting capital to avoid high-risk assets, exacerbating the downward pressure on ETH. (Cointelegraph)
