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

BlockBeats News, February 4th. According to Cointelegraph, Ethereum's price faces further downside risks in February. Technically, ETH has entered a typical "Inverse Cup and Handle" breakdown phase. If the pattern completes, the target price points to around $1665, representing about a 25% downside potential from the current level.

From a price action perspective, ETH broke below the pattern's neckline around $2960 in January, then rebounded to test that level but failed and fell back. At the same time, it failed to reclaim the 20-day and 50-day EMAs, both of which have now become significant overhead resistance levels. Multiple technical signals align to reinforce expectations of a short-term continuation of the downtrend.

On-chain data also signals bearish sentiment. The MVRV extreme divergence range indicates that ETH's potential downside target is around $1725, with further downside not being ruled out. Historically, ETH has tended to gradually bottom out and initiate a rebound after touching or dropping below the MVRV lower bound.

From a macro perspective, the market's risk appetite for crypto assets is diminishing. Some traders are concerned about a potential overall retracement in 2026 similar to past "four-year cycles." Additionally, expectations of an "AI Bubble" burst have prompted funds to avoid high-risk assets, intensifying the downward pressure on ETH.