Is Ethereum (ETH) Going to Drop Below $2,000? Current Charts and Data That Indicate

Hello everyone, I recently took a close look at Ethereum (ETH)’s current price action and technical charts. Given the current market conditions, February could be a very risky month for Ethereum. My analysis suggests that Ethereum’s price could drop below $2,000. I’ll explain the reasons behind why this seems to be the case in a simple way.

While analyzing the chart, I noticed that a large “Inverse Cup-and-Handle” pattern had formed on Ethereum’s daily chart. In simple terms, it looks like an upside-down teacup. In technical analysis, this pattern is usually considered a bearish signal. Ethereum has already broken the neckline or support level of this pattern (which was around $2,960). Usually, after breaking this pattern, the price falls further. According to the chart, the target or target of this decline is around $1,665. That is, it could fall by about 25% from its current position.

Another thing that worries me is the moving averages. Whenever Ethereum has tried to turn around, it has been stuck at the 20-day and 50-day moving averages (EMA). These levels are now acting as strong 'resistance' or ceilings, which do not allow the price to go up.

Not only the chart, but I also looked at the on-chain data. In particular, looking at the MVRV (Market Value to Realized Value) band, it seems that the next strong support for Ethereum is at $1,725. In the past, when the market has gone through a very bad situation, the price has found a bottom or 'bottom' at the lowest level of this MVRV band. Then the market has turned around from there (as we saw in April 2018 and 2025). So the $1,725 level is a very important zone for us.

Beyond technical issues, market sentiment or investor sentiment is now negative. Many traders are expecting a major recession (cyclical downturn) around 2026. In addition, there is a kind of fear in the market about the "AI Bubble", due to which investors are staying away from risky assets like crypto.

Friends, each the chart sample and on-chain data suggest that Ethereum ought to fall into the $1,665 to $1,725 variety in February or early March. So we ought to keep a close eye on these guide ranges before taking any new massive entries at the moment. The marketplace is now in a totally bearish or downtrend, so it might be smart to tread carefully.