The value of Ethereum’s native token, Ether (ETH), dangers sliding beneath $2,000 in February as a traditional bearish setup performs out.
Key takeaways:
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ETH breakdown retains $1,665 draw back goal in focus.
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MVRV bands additionally level to cost sliding towards $1,725 or decrease earlier than a possible backside.
ETH dangers declining 25% in February
As of Wednesday, ETH had entered the breakdown stage of its prevailing inverse-cup-and-handle (IC&H) sample. This might lengthen a downtrend that has already erased about 60% from its August 2025 peak.
An IC&H sample types when value types a rounded high after which drifts larger in a small restoration channel. It usually resolves when the value breaks beneath the neckline assist, usually falling by as a lot because the cup’s most peak.
Ether broke beneath the inverse cup-and-handle neckline close to $2,960 in January. It later rebounded to retest that stage as resistance, a typical post-breakdown transfer, solely to renew its decline.
ETH’s rebound additionally stalled beneath the 20-day (inexperienced) and 50-day (pink) EMAs, which acted as overhead resistance.
These confluence indicators raised ETH’s odds of declining towards the IC&H breakdown goal at round $1,665, down 25%, in February or by early March.
Traditionally, the inverse cup-and-handle hits its projected draw back goal with an 82% success price, in keeping with a research by Chartswatcher.
From a macro perspective, Ethereum’s draw back danger is rising as merchants reduce on crypto bets, nervous the market may slip right into a broader 2026 downturn just like previous “four-year cycle” pullbacks.
Fears of an “AI bubble” popping are additionally forcing merchants to keep away from riskier bets similar to crypto.
Ethereum’s MVRV bands trace at $1,725 goal
Ethereum’s technical draw back goal sat slightly below the bottom boundary of its MVRV excessive deviation pricing bands, at present at $1,725.
These bands are onchain value zones that present when ETH is buying and selling beneath or above the common value at which merchants final moved their cash.
Traditionally, ETH value plunged close to and even beneath the bottom MVRV band earlier than bottoming out.
That features the April 2025 bounce, when the ETH value rose 90% a month after testing the bottom MVRV deviation band round $1,390. An analogous rebound occurred in June 2018.
Associated: ETH funding price turns unfavourable, however US macro situations mute purchase sign
Subsequently, Ether might decline towards $1,725 or beneath in February, which strains up with the IC&H draw back goal.
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