During Wednesday’s session, the crypto market has cautiously observed how Ether, the native currency of the Ethereum network, shows structural weakness that could drag its valuation down. According to the latest technical and network indicators, there is a tangible risk of seeing the Ethereum price below 2,000 dollars during the month of February.
This projection arises after the confirmation of an “inverse cup and handle” pattern on the daily chart, a classic formation that usually precedes deep corrections in financial assets. If the theoretical projection of this model is met, which has a historical success rate of 82%, the asset could retreat to the 1,665 dollar zone, representing an additional 25% drop.
From an analytical perspective, the cryptocurrency’s recent rebound attempt was abruptly halted by the 20 and 50-day exponential moving averages (EMA), which acted as an insurmountable resistance. This stagnation suggests that sellers maintain absolute control of the market, therefore, the possibility of a capitulation toward lower supports gains strength among traders and institutional investors.
What do MVRV price bands reveal about the market bottom?
Complementing the technical analysis, on-chain metrics indicate that the market value to realized value (MVRV) places its extreme deviation band at 1,725 dollars. Historically, the asset tends to seek these undervalued levels before consolidating a definitive floor, which reinforces the thesis that the Ethereum price below 2,000 dollars is a highly probable scenario in the short term.
Likewise, the current macroeconomic environment, characterized by a capital rotation out of risk assets and fear of a correction in the artificial intelligence sector, pressures prices upward. Therefore, the lack of immediate catalysts and the increase in ETH inflows to exchanges could accelerate the loss of key psychological levels, leaving bulls without room to maneuver.
Ultimately, the market seems to be digesting a deleveraging cycle that has erased much of the gains made over the last year, affecting participant confidence. However, as long as the resistance zone located at 2,960 dollars is not recovered, the predominant bias will remain corrective, keeping analysts’ attention on the support levels of mid-2025.
The cryptocurrency is in a price discovery phase where the absorption of excess supply will determine if the 1,700 dollar support is sufficient to stop the bleeding. Therefore, investors should closely monitor trading volume in the coming sessions, as a breakout with high participation would confirm the continuation of this global financial adjustment cycle.
