Ether (ETH), the primary token of the Ethereum network, is under renewed pressure as recent technical indicators and on-chain data point to the risk of a further downturn. Technical analysts are watching a “bear pennant” pattern on the daily chart, which flags the potential for ETH to drop as low as $1,800 in the near term.
Technical signals and critical price levels
After reaching multi-month highs above $2,400 in previous trading sessions, ETH lost traction and slid 13 percent, breaking below a key ascending trend line. This move beneath a strong support has caught the eye of technical traders, many of whom interpret the action as a bearish signal.
Typically, a bear pennant pattern emerges following a sharp drop, as prices consolidate in a narrowing range before another move down. In the ETH/USD pair, any close below $2,060 could trigger a further fall, potentially matching the length of the previous decline and putting the $1,800 level in focus as the next significant target for bears.
“This is a critical inflection point. If the price fails to reclaim the former support, there is a real risk of a dip below $1,800.”
Crypto analyst Alex Marzell highlighted that if ETH falls below $2,050, there could be a retreat toward the $1,800 support region. Reporting from Cointelegraph suggests that should the current supports fail, ETH could even slip to $1,750 in the short term.
Mini glossary: A bear pennant is a technical formation where, after a sharp price drop, the price consolidates in a contracting shape and then often resumes falling with renewed losses.
TVL sinks and ecosystem struggles
Total value locked (TVL) in the Ethereum ecosystem has fallen sharply, dropping to $116 billion, marking its lowest point since April 2025. Compared to its historical peak of $258 billion seen in August 2025, Ethereum’s TVL has now plunged by 55 percent.
This contraction is not limited to the Ethereum mainnet. Layer 2 scaling solutions have also witnessed heightened declines. For instance, Ether.fi’s TVL contracted by 32 percent over the past 30 days.
| Platform/Network | 30-Day TVL Change (%) |
|---|---|
| Ether.fi | -32 |
| Arbitrum | -63 |
| zkSync | -64 |
| Linea | -98 |
Crypto analytics platform CryptoRank has underscored the persistent TVL decline in Ethereum’s Layer 2 segment. Their analysis attributes much of this volatility to short-term reward campaigns and incentive programs that have led to unstable liquidity.
Ongoing selling and market outlook
The persistent weakness in ETH pricing is coming from several directions at once: steep falls in ecosystem TVL, staff departures from the Ethereum Foundation, and dwindling investor appetite on social media all weigh on sentiment. As demand continues to decline on-chain, downward pressure on ETH is mounting.
“The ongoing reduction in Ethereum network TVL is creating additional short-term pressure on the price.”
