Ethereum Price Targets $1.8K as TVL Falls to 13-Month Low
26 May 2026 · 11:28 UTC · CoinCentral RSS Feed · Original source
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Summary
Ethereum has formed a bear pennant pattern on the daily chart following a 13% decline from above $2,400. A break below the $2,060 support level could trigger a move toward $1,800. Total value locked on Ethereum has fallen to $116 billion, representing a 55% decline from its August 2025 peak. Layer-2 networks built on Ethereum have also been affected by the TVL decline. The article presents technical analysis and ecosystem metrics indicating weakness in Ethereum DeFi activity.
Why it matters
Credibility of 0.40 reflects CoinCentral's moderate authority (0.4) and reliance on subjective technical analysis rather than fundamental developments. Technical chart patterns are predictive but not deterministic; bear pennants have statistical bearish bias but frequently result in false breakdowns. The TVL decline is objective data suggesting reduced ecosystem usage and yield opportunities, with genuine bearish implications. Ethereum's centrality to DeFi and Layer-2 ecosystems means its weakness directly propagates to altcoins, justifying higher impact probability and stronger directional bias in alt predictions compared to BTC. Confidence levels reflect high certainty for alt timeframes (0.68-0.75) due to direct correlation, but lower confidence for BTC predictions (0.50-0.75) due to indirect relationship mediated by broader market sentiment. Expected volatility increases across timeframes due to potential technical breakdown. The bear pennant implies measurable impact probability across all alt timeframes (0.50-0.80), with peak at daily (0.80) where technical analysis is most actionable. Key uncertainties include: whether support holds, whether TVL decline reflects temporary delevering or structural ecosystem weakness, and whether macro factors override technical setup.
Expected impact
The article presents a bearish technical setup for Ethereum with a bear pennant pattern suggesting downside potential toward $1,800 if support at $2,060 breaks. This bearish forecast, combined with TVL decline to $116B (down 55% from August 2025 peak), signals weakness in DeFi ecosystem health and Ethereum utility. Immediate market impacts are expected primarily in the altcoin sector, as Ethereum weakness directly affects Layer-2 networks and DeFi protocols. The TVL decline suggests reduced yield farming and DeFi activity, which could precipitate further selling as investors exit lower-liquidity positions. For Bitcoin, impacts are more indirect through risk-sentiment correlation; broader crypto weakness in major altcoins typically precedes BTC consolidation. The bear pennant on daily charts suggests daily and weekly timeframes face the most pressure, while longer-term reversals are possible depending on macro conditions. Shorter timeframes (minute/hour) face lower direct impact unless the article triggers algorithmic or momentum-based selling.