Ethereum Set to Drop Below $2,000: Analysis Indicates Further Decline
Ethereum's price is at risk of falling below $2,000 as bearish signals indicate further decline in February.
As the price of Ether (ETH) approaches a classic bearish setup, it faces the risk of falling beneath $2,000 this February. Key insights include:
- A breakdown in the price keeps a target of $1,665 firmly in sight.
- MVRV bands suggest movement towards $1,725 or lower could be on the horizon before a potential bottom emerges.
Market Analysis
ETH/USD daily chart. Source: TradingView
As of now, ETH has entered the breakdown phase of its inverted cup-and-handle (IC&H) pattern, potentially extending a downward trend that has already diminished its value by 60% from its peak in August 2025.
An IC&H pattern is characterized by a rounded top followed by a slight recovery, usually resolving when the price falls below the neckline. Ether initially broke below this neckline near $2,960 last January and subsequently retested this level before continuing its decline.
Ether Inverse Cup-and-Handle
Ether inverse cup-and-handle. Source: TradingView
The price rebound was hindered by the 20-day and 50-day EMAs that acted as resistance.
This combination of indicators increases ETH’s likelihood of dipping to the IC&H target of approximately $1,665, representing a 25% decline by February or early March. Historically, the IC&H formation has a success rate of hitting its downside target at 82% as per a study by Chartswatcher.
From a broader perspective, Ethereum’s risk is escalating as traders are hesitant to make crypto investments, fearing a potential downturn akin to previous four-year cycle retracements. Concerns regarding the possible collapse of the AI bubble are also prompting a more cautious approach from traders regarding high-risk investments including cryptocurrencies.
Furthermore, Ethereum’s projected downside target aligns with $1,725, which is just below the lowest boundary of its MVRV extreme deviation pricing bands—historically, ETH tends to drop near or below this threshold before recovering. Previous instances include significant rebounds in April 2025 and June 2018 after testing low MVRV bands.
In summary, ETH is expected to decline towards $1,725 or lower in February, coinciding with the IC&H target.
