The price of ether (ETH) has printed a “bear pennant” on the daily chart, a technical pattern associated with a forceful downtrend. Could the weakening technical setup and decline in total locked value signal a continuation of ETH’s correction to $1,800?
Key takeaways:
- Ether is forming a bear flag on the daily chart, with a potential break to $1,800.
- The ETH price may see further losses if Ethereum’s total locked value continues to decline.
Ether is seeing the ETH price drop to $1,800
Ether’s 13% drop from multi-month highs above $2,400 marks a break of a key trend line that has been supporting the price since early February.
“ETH will drop hard soon?” Chain mind he said in a video posted on X suggesting where ETH/USD may move next after falling below the uptrend line.
“This is a key moment for ETH,” Chain Mind said, adding that the price was necessary to regain the support level, otherwise a drop to areas below $1,800 would be expected.
ETH daily chart. Source: X/Chain Mind
Meanwhile, ETH price has formed a bearish pennant pattern on the daily chart, as shown below.
A bear pennant pattern is a bearish configuration that forms when price consolidates within two converging lines after a piercing price decline.
ETH/USD daily chart. Source: Cointelegraph/TradingView
The pennant will resolve when price breaks below the lower trendline at $2,060, opening the way for a decline equal to the height of the previous uptrend. This means that the low target for ETH/USD is $1,800, which is a 14% decline from the current price.
Crypto analyst Alex Marzell he said that if the price of Ether falls below $2,050, it will boost the chances of a move towards the next support zone at $1,800.
Source: Alex Marzell
As Cointelegraph reportedEther’s downtrend is likely to continue towards $1,750 in the brief term if key support levels fail to hold.
Ethereum Total Locked Value Crashes 55%
Ether’s bearish technical outlook coincides with several other headwinds such as the recent one Departure of the Ethereum Foundationdampening sentiment on social media and reducing total value locked (TVL) in DeFi protocols.
The Ethereum network’s TVL has now dropped to $116 billion, a level last seen in April 2025. By comparison, the network’s TVL reached an all-time high of $258 billion on August 14, 2025.
As a result, TVL has more than halved, representing a 55% decline.
Total Etherum value locked. Source: DefiLlama
The negative TVL growth is more pronounced on the layer 2 (L2) network Ethereum leads Ether.fi whose total locked value has decreased by 32% in the last 30 days.
“There is a Sustained TVL Decline” in Ethereum’s L2 Sector, CryptoRank he said in a note on Telegram on Monday.
The sharpest corrections are seen in Arbitrum (-63%), zkSync (-64%) and Linea (-98%), “indicating high sensitivity of liquidity to incentive programs and short-term reward mechanics,” the crypto analytics platform said, adding:
“This reinforces the broader picture of capital fragmentation in the Ethereum rollup ecosystem and undermines the ‘unified liquidity pool’ effect that early L2 development models envisioned.”
Layer 2 networks: TVL drop from October 2025 Source: CryptoRank
The decline in TVL signals weakening demand on the network, increasing downward pressure on ETH and increasing risk of further price declines in the near future.
