Analysis: The risk of ETH falling below $2000 has increased, with technical patterns and on-chain indicators pointing to the $1665–$1725 range.

ChainCatcher reports that, according to Cointelegraph, Ethereum’s price is facing further downside risk. Technical analysis shows that ETH has entered the typical “Inverse Cup and Handle” breakdown phase. If the pattern completes, the target price is around $1,665, representing approximately 25% downside from the current level. From the trend perspective, ETH broke below the neckline of about $2,960 in January, then rebounded to test that level but was rejected and fell back, failing to regain the 20-day and 50-day EMAs, which have now become significant resistance levels.

Multiple technical signals resonate, reinforcing the expectation of continued short-term decline. On-chain data also leans bearish. The MVRV extreme deviation zone indicates a potential downside target near $1,725, with the possibility of further decline. Historically, ETH has often bottomed out and started to rebound after touching or breaking below the lower MVRV band. On a macro level, market risk appetite for cryptocurrencies has decreased, with some traders worried about a potential overall correction similar to past “four-year cycles” in 2026; additionally, the expectation that the “AI bubble” may burst has also prompted capital to avoid high-risk assets, intensifying ETH’s downward pressure.