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Analysis: ETH Breaking Below $2000 Puts Pressure on Price, Technical Pattern and On-Chain Metrics Point to $1665–$1725 Range

2026.02.04 19:09:15

February 4th — Ethereum (ETH) faces further downside risks this February, per Cointelegraph. Technically, ETH has entered a classic inverse cup-and-handle breakdown phase. If the pattern completes, its target price sits around $1,665 — a roughly 25% drop from current levels. From a price action standpoint, ETH broke below the pattern’s neckline (~$2,960) in January, then rebounded to test that level but failed and pulled back. It also hasn’t reclaimed its 20-day and 50-day EMAs, which now act as key overhead resistance levels. Multiple technical signals line up to reinforce expectations of a short-term downtrend continuation. On-chain data also signals bearish sentiment. The MVRV (Market Value to Realized Value) extreme divergence range points to a downside target of ~$1,725 for ETH, with further downside not ruled out. Historically, ETH has tended to gradually bottom out and start a rebound after touching or falling below the MVRV lower bound. Macro-wise, risk appetite for crypto assets is fading. Some traders are worried about a potential broad retracement in 2026 — similar to past four-year cycles. Plus, expectations of an “AI bubble burst” have pushed funds to shun high-risk assets, ramping up downward pressure on ETH.
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