Analysis: The risk of ETH falling below $2000 has increased, with technical patterns and on-chain indicators pointing to the $1665–$1725 range.

SmartContractAuditor · 2026-02-04T11:16:06+00:00

Ethereum (ETH) faces downside risk in February, with technical indicators showing it has entered an inverted cup and handle pattern, with a target price approaching $1665, a decline of about 25%. On-chain data and market sentiment are both bearish, and investors' risk appetite for cryptocurrencies is decreasing, which may lead to further declines.

SmartContractAuditor

2026-02-04 11:16:06

Abstract generation in progress

Odaily Planet Daily reports that Ethereum prices face further downside risk in February. Technical analysis shows that ETH has entered the typical “Inverse Cup and Handle” breakdown phase. If the pattern completes, the target price is around $1,665, representing approximately 25% downside potential from current levels.

From the trend perspective, ETH broke below the approximately $2,960 neckline in January, then rebounded to test that level but was rejected and fell back. It also failed to regain the 20-day and 50-day EMAs, which have now become clear resistance levels. Multiple technical signals resonate, reinforcing expectations of continued short-term decline.

On-chain data also leans bearish. The MVRV extreme deviation zone indicates a potential downside target near $1,725, with the possibility of further decline. Historically, ETH has often bottomed out and begun to rebound after touching or breaking below the MVRV lower band.

On the macro level, market risk appetite for cryptocurrencies has decreased. Some traders worry about a potential overall correction similar to the past “four-year cycle” in 2026. Additionally, expectations of a “AI bubble” burst may also cause capital to avoid high-risk assets, intensifying ETH’s downward pressure. (Cointelegraph)

ETH-4,64%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.