TLDR
- Ethereum price has formed a bear pennant on the daily chart after a 13% decline from above $2,400.
- A break below the $2,060 support level could open the way for a move toward $1,800.
- Total value locked on Ethereum has fallen to $116 billion, down 55% from its August 2025 peak.
- Layer-2 networks including Arbitrum, zkSync, and Linea have recorded sharp TVL declines.
- Analysts say sustained TVL weakness reflects reduced onchain demand across the Ethereum ecosystem.
Ethereum price faces renewed pressure after forming a bear pennant on the daily chart. The pattern appeared as total value locked across the network fell to $116 billion. Analysts say a break below $2,060 could open the way toward $1,800.
Ether has dropped 13% from multi-month highs above $2,400. The decline pushed the token below a key ascending trend line that had held since February.
Chain Mind said the breakdown marked a critical phase for the market. “This is the crucial moment for ETH,” he stated in a video posted on X.
ETH IS GOING TO DUMP HARD SOON?
This is the crucial moment for ETH:
Hold = we are going up
Break = dump to ~$1,500 levelsMeans the next daily close decides the next major ETH move.
Notifs on, I'll update you on this pic.twitter.com/q22p7ssg9d
— 𝗖𝗛𝗔𝗜𝗡 𝗠𝗜𝗡𝗗 ⛓🧠 (@0xChainMind) May 25, 2026
He added that the asset must reclaim the lost support quickly. Otherwise, he said, a move below $1,800 could follow.
Alex Marzell shared a similar view on social media. He said a drop below $2,050 would raise the odds of a slide toward $1,800.
Update on the $ETH chart:
The $2,050 support box has NOT been lost yet.
Bulls are still defending the zone for now, which keeps the structure alive short term.
But the warning remains the same:
If ETH loses this area convincingly, the move toward the $1,800 support zone could… pic.twitter.com/F9obI73QXr
— Alex Marzell (@MarzellCrypto) May 25, 2026
The daily chart shows a bear pennant formation after a sharp price fall. The pattern forms when price consolidates between two converging trend lines.
A confirmed break below the lower boundary near $2,060 would validate the setup. Technical projections place the measured move near $1,800, about 14% below current levels.
Ethereum Price Faces Pressure as Bear Pennant Forms
The Ethereum price action reflects weakening short-term momentum. Trading volumes have cooled during the recent consolidation phase.
Market structure shifted after the token lost its multi-month trend line. The breakdown ended a series of higher lows that started in early February.
The pattern developed after a sharp correction from above $2,400. Such formations often signal continuation of the prior downward move.
Analysts have focused on the $2,050 to $2,060 range as immediate support. A sustained move below that zone would confirm further downside pressure.
TVL Decline Deepens Across Ethereum and Layer-2 Networks
Ethereum’s total value locked has fallen to $116 billion. That level was last recorded in April 2025.
The network’s TVL reached an all-time high of $258 billion on Aug. 14, 2025. The current figure represents a 55% decline from that peak.
CryptoRank reported a sustained decline across Ethereum’s layer-2 ecosystem. The analytics firm wrote on Telegram that “there is a sustained TVL decline” across the sector.
Ether.fi recorded a 32% drop in TVL over the past 30 days. Other networks showed steeper contractions during the same period.
Arbitrum posted a 63% decrease in locked value. zkSync fell 64%, while Linea declined 98%, according to CryptoRank data.
The firm said the declines point to high liquidity sensitivity to incentive programs. It added that the trend reflects capital fragmentation within Ethereum’s rollup ecosystem.
Declining TVL signals reduced onchain demand for the Ethereum blockchain. The data coincides with the latest Ethereum price pullback toward key support levels.
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