Ethereum price chart targets $1.8K as total value locked hits 13-month lows
26 May 2026 · 10:33 UTC · Cointelegraph RSS Feed · Original source
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Summary
Ether price eyes a 14% drop to $1,800 as it trades in a classic bearish pattern amid declining total value locked on the Ethereum network.
Why it matters
Technical analysis showing a classic bearish pattern provides traders with a clear directional bias, particularly in daily to weekly timeframes. The declining TVL reinforces the bearish narrative by suggesting reduced capital deployment in DeFi, reflecting user concerns about yield sustainability or ecosystem risks. The 14% price target creates a focal point for trading decisions—traders may increase position sizing near this level and accelerate selling as it approaches, amplifying volatility. Bitcoin may initially hold relatively better during altcoin weakness through flight-to-safety dynamics, but this only extends bearish pressure on alts. Key assumptions: (1) Technical patterns have predictive power, (2) TVL decline reflects genuine user conviction, (3) Traders actively trade toward the $1,800 level, (4) Weakness doesn't immediately cascade to Bitcoin. Main uncertainties: (1) Whether this is a correction or sustained downtrend, (2) Whether TVL decline is fundamental or temporary, (3) How quickly sentiment propagates from alts to Bitcoin.
Expected impact
Ethereum faces short-to-medium-term bearish pressure based on technical chart analysis targeting a 14% decline to $1,800. The concurrent decline in total value locked on the network signals weakening DeFi sentiment and reduced capital deployment. This technical breakdown on Ethereum, a key altcoin proxy, is likely to create selling pressure across the broader altcoin market within daily to weekly timeframes. Alts are expected to experience elevated volatility and downward price movement as traders recognize the bearish pattern and adjust positions. Bitcoin may initially benefit from relative strength as capital rotates toward perceived safety, though sustained altcoin weakness could eventually drag on broader market sentiment if it indicates deeper ecosystem concerns. The specific $1,800 price target provides a concrete level that traders will monitor, potentially accelerating moves as price approaches that level.