BlockBeats News, on February 4, according to Cointelegraph, the price of Ethereum faces further downside risks in February. The technical analysis shows that ETH has entered the breakout phase of a typical "Inverse Cup and Handle" pattern. If the pattern completes fully, the target price would be around $1,665, indicating approximately 25% downside potential from the current level.
From the chart pattern, ETH broke below the formation neckline of about $2,960 in January, then rebounded to test this level but was rejected and fell back, while also failing to reestablish above the 20-day and 50-day EMA, which have now become clear overhead resistance. Multiple technical signals are converging, reinforcing the expectation of further declines in the short term.
On-chain data is also bearish. The extreme deviation range of MVRV indicates that ETH's potential downside target is around $1,725, and it cannot be ruled out that it will further decline. Historically, ETH has multiple times only gradually formed a bottom and initiated a rebound after touching or breaking below the MVRV lower band.
On a macro level, the market's risk appetite for crypto assets has declined, with some traders concerned that a general correction similar to the previous "four-year cycle" may occur in 2026; at the same time, expectations that the "AI bubble" may burst have also prompted capital to avoid high-risk assets, intensifying downward pressure on ETH.