Analysis: ETH Risk of Falling Below $2,000 Increases, Technical Patterns and On-chain Indicators Point to the $1,665–$1,725 Range

ChainCatcher News, according to Cointelegraph, Ethereum is facing further downside risk. Technically, ETH has entered the typical "Inverse Cup and Handle" breakdown phase. If this pattern fully plays out, the target price points to around $1,665, representing about 25% downside from current levels. From the price action, ETH broke below the neckline at around $2,960 in January, then rebounded to test this level but was rejected, and has failed to reclaim the 20-day and 50-day EMA, both of which have now turned into significant overhead resistance.

Multiple technical signals are resonating, reinforcing expectations of continued short-term decline. On-chain data is also bearish. The MVRV extreme deviation range indicates that ETH's potential downside target is near $1,725, and further downside cannot be ruled out. Historically, ETH has often only bottomed out and started to rebound after touching or breaking below the lower bound of the MVRV. On the macro level, market risk appetite for crypto assets is declining, with some traders concerned about a possible overall correction in 2026 similar to previous "four-year cycles." At the same time, expectations of a potential "AI bubble" burst are prompting funds to avoid high-risk assets, further increasing downward pressure on ETH.