Ether’s (ETH) price printed a “bear pennant” on the daily chart, a technical chart formation associated with strong downward momentum. Could a weakening technical setup and a decline in total value locked signal the continuation of ETH’s correction to $1,800?
Key takeaways:
- Ether is forming a bear pennant on the daily chart, with a potential breakdown to $1,800.
- ETH price may see further losses if Ethereum’s total value locked continues to shrink.
Ether bears eye ETH price “dump” to $1,800
Ether’s 13% drop from its multi-month highs above $2,400 saw it breach a key trend line that has supported the price since early February.
“ETH is going to dump hard soon?” Chain Mind said in a video posted on X, suggesting where ETH/USD might move next after dropping below the ascending trend line.
“This is the crucial moment for ETH,” Chain Mind said, adding that the price was required to reclaim the support level, otherwise a drop to areas below $1,800 was in the cards.
ETH daily chart. Source: X/Chain Mind
Meanwhile, ETH’s price has formed a bear pennant chart pattern on the daily chart, as shown below.
A bear pennant pattern is a bearish setup that forms after the price consolidates inside two converging lines following a sharp price drop.
ETH/USD daily chart. Source: Cointelegraph/TradingView
The pennant will resolve once the price breaks below the lower trend line at $2,060, opening the way for a drop equal to the previous uptrend’s height. This puts the lower target for ETH/USD at $1,800, down 14% from the current price.
Crypto analyst Alex Marzell said that if Ether’s price dropped below $2,050, it would increase the chances of a move toward the next support zone at $1,800.
Source: Alex Marzell
As Cointelegraph reported, Ether’s downtrend is likely to continue toward $1,750 in the short term if key support levels do not hold.
Ethereum’s total value locked crashes 55%
Ether’s bearish technical outlook overlaps with several other headwinds, such as recent Ethereum Foundation departures, weakening social media sentiment, and declining total value locked (TVL) across its DeFi protocols.
Ethereum’s TVL has now fallen to $116 billion, levels last seen in April 2025. For comparison, the network’s TVL hit an all-time high of $258 billion on Aug. 14, 2025.
The TVL has therefore more than halved, representing a 55% decline.
Ethereum total value locked. Source: DefiLlama
Negative TVL growth is more pronounced in Ethereum’s layer-2 (L2) network, led by Ether.fi whose total value locked is down 32% over the last 30 days.
“There is a sustained TVL decline” across Ethereum’s L2 sector, CryptoRank said in its Telegram note on Monday.
The sharpest corrections are seen in Arbitrum (-63%), zkSync (-64%), and Linea (-98%), “pointing to high liquidity sensitivity to incentive programs and short-term reward mechanics,” the crypto analytics platform said, adding:
“This reinforces the broader picture of capital fragmentation in Ethereum’s rollup ecosystem and undermines the ‘unified liquidity pool’ effect that early L2 development models envisioned.”
Layer-2 networks: TVL decline since October 2025. Source: CryptoRank
Declining TVL signals weakening onchain demand, adding downside pressure on ETH and increasing the risk of further price declines in the near term.
