ETH could fall below $2K this month on bearish signals, analysis suggests

Ethereum (ETH) could break below $2,000 this month, driven by a bearish technical setup and deteriorating on-chain metrics, Cointelegraph reports. According to the analysis, ETH has entered the breakdown phase of an inverse cup and handle pattern, a classic bearish signal, with its price having fallen approximately 60% from its high last August. The price has dropped below the pattern's neckline of $2,960, which is now acting as major resistance and contributing to the renewed downtrend. ETH also faces strong resistance as it trades below its 20-day and 50-day moving averages on the daily chart. This pattern suggests a potential further decline of about 25% to $1,665 by early next month. On-chain data supports this outlook, with the Market Value to Realized Value (MVRV) bands indicating a possible drop to $1,725 or lower. The report adds that investors are reducing their exposure, fearing a repeat of the crypto market's four-year cycle, while concerns over a potential AI bubble burst are amplifying risk-off sentiment for assets like crypto.