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The Classic Chart Patterns Indicate that ETH could fall below $2000

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Can Shiba Inu's UAE Energy Ministry Alliance Push It to
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Ether, Ethereum’s native coin (ETHAs a result of a bearish set-up, the price could fall below $2,000 by February.

The key takeaways

  • But the $1665 price target remains in mind.

  • The MVRV band also indicates that the price is likely to fall toward $1.725 before it reaches a bottom.

Source: TradingView.com. ETH/USD chart. TradingView

ETH risks declining 25% in February

As of Wednesday, ETH had entered the breakdown stage of its prevailing inverse-cup-and-handle (IC&H) pattern. The downtrend could be extended, as it has already lost about 60% of its peak in August 2025.

An IC&H pattern forms when price forms a rounded top and then drifts higher in a small recovery channel. It usually ends when the price drops below the neckline, sometimes by the same amount as the height of the cup.

In January, Ether fell below the cup-and handle neckline. The price then rebounded and retested that level, which is common after a breakdown. Its decline resumed.

The inverse cup handle. TradingView

ETH’s recovery also stalled beneath the 20-day (green), and 50-day(red) EMAs which acted overhead resistance.

These confluence indicators raised ETH’s odds of declining toward the IC&H breakdown target at around $1,665, down 25%, in February or by early March.

According to A, historically, inverse cups-and-handles have achieved their projected target at the bottom with an 82 percent success rate. study By Chartswatcher

The downside risk of Ethereum is growing from a macro-perspective. traders cut back on crypto betsThe market is worried that it could slide into a larger 2026 decline similar to the past.four-year cycle” pullbacks.

There is a “AI bubbleTraders are forced to stay away from crypto and riskier betting.

Ethereum’s MVRV bands hint at a $1,725 goal

Ethereum’s technical down target was just above the bottom boundary of MVRV extreme price deviation bands. It is currently $1,725.

Onchain bands that indicate when ETH prices are below or above their average last traded price.

Ethereum MVRV pricing extreme deviation bands. Glassnode is a source for Ethereum MVRV extreme deviation pricing bands.

ETH prices have historically fallen to the lower MVRV bands or even less.

This includes the bounce of April 2025, where the ETH rate rose by 90% a year after the price tested the MVRV’s lowest deviation band, around $1 390. In June 2018, a similar bounce occurred.

Related: ETH funding rate turns negative, but US macro conditions mute buy signal

Therefore, Ether may decline toward $1,725 or below in February, which lines up with the IC&H downside target.