Why is ETHUSD Ethereum USD dropping 13% in February 2026?

ETHUSD declined due to institutional outflows ($447 million from spot ETFs), $2 billion in liquidated leveraged positions, and a 47% collapse in Ethereum network activity. Broader market concerns about AI valuations and recession fears also triggered risk-averse selling across crypto markets.

What is the ETHUSD price target from technical analysis?

The inverse cup-and-handle pattern targets $1,665, representing a 32% decline from current levels. MVRV bands suggest $1,725 as an extreme deviation zone where historical bounces have occurred. These targets have 82% historical success rates.

Is ETHUSD oversold based on RSI and other indicators?

RSI at 49.07 sits neutral but trending lower, not yet oversold. MACD shows developing bearish crossover. ADX at 24.43 indicates weakening trend strength. True oversold conditions typically emerge below RSI 30, which ETHUSD has not yet reached.

What support levels should ETHUSD traders watch?

Immediate support sits at $2,771.08 (lower Bollinger Band). Secondary support is at $2,238.74 (day low). Major support targets are $1,725 (MVRV band) and $1,665 (inverse cup-and-handle target). Breaking $2,771 opens path toward these lower levels.

Could ETHUSD bounce from current levels?

Possible if institutional buying resumes or macro sentiment improves. Negative funding rates could attract contrarian traders. However, weak network activity and ongoing outflows suggest downside risks outweigh bounce potential in the near term.

Crypto Insights

ETHUSD Ethereum USD Faces $1,665 Target as -13.08% Decline Accelerates

ByDanny Kontos February 5, 2026February 5, 2026

Ethereum USD (ETHUSD) has declined sharply, falling 13.08% to trade at $2,449.36 as of February 4, 2026. The cryptocurrency faces significant technical pressure as a classic inverse cup-and-handle pattern suggests further downside. Market data shows ETHUSD has underperformed the broader crypto market by 10% over the past month, with spot ETF outflows reaching $447 million. Network activity has dropped 47% as traders reassess risk exposure amid macroeconomic uncertainty. Understanding the technical setup and market dynamics driving this decline is essential for tracking ETHUSD’s next major move.