The price of Ethereum’s token, Ether (ETH), is at risk of falling below $2,000 in February due to a bearish setup. Key indicators suggest a potential 25% decline, with a downside target of $1,665. ETH’s recent breakdown pattern and historical trends point to a continued downtrend.

Ethereum’s technical analysis shows a classic inverse-cup-and-handle pattern, indicating a bearish trend. The price has already dropped significantly from its peak, with a potential 25% decline looming. Historical data suggests an 82% success rate in hitting downside targets for this pattern.

ETH’s rebound attempts have been thwarted by resistance at the 20-day and 50-day EMAs, signaling further downside potential. Traders are cautious about the broader market outlook, with concerns of a potential downturn affecting crypto investments. Fears of an “AI bubble” bursting are also impacting riskier assets like crypto.

Ethereum’s MVRV bands point to a downside target of around $1,725, aligning with the IC&H pattern’s projection. Historical data shows that ETH price tends to bounce back after testing the lowest MVRV deviation band, indicating a potential rebound in the future. Traders should be cautious and conduct their own research before making any investment decisions.

Read more at Cointelegraph: Classic Chart Pattern Signals ETH Could Slip Below $2K