Ethereum stalls near $2,140 as DeFi TVL falls $43B

Ethereum is trading near $2,140 and is roughly 10% behind Bitcoin after on-chain metrics showed a large drop in decentralized finance activity on the Ethereum network since mid-January.

DeFi total value locked on Ethereum fell from about $106.7 billion on Jan. 15 to about $62.96 billion on May 18, a decline of roughly $43.7 billion. DeFi TVL was near $80.3 billion in late March and lost about $17 billion through mid-May.

On the daily price chart, Ethereum formed an inverted cup-and-handle pattern between March 29 and May 18. The recent rise resembles the handle of that pattern. Market participants watch $2,132 as the immediate level that keeps the handle bounce alive. A break below $2,087 on a daily close would confirm the pattern.

If the pattern is confirmed, a measured target based on the formation is near $1,690, about 19% below the $2,087 neckline. On the upside, reclaiming $2,210, the 0.382 Fibonacci retracement from the $1,799 low to the $2,464 high, would be an initial sign of strength. Regaining $2,307 would further weaken the pattern, and a move above $2,464 would invalidate it.

On-chain holder data shows the 3-month to 6-month holder cohort shrinking from 18.63% of supply on April 7 to 12.73% on May 18, a drop of about six percentage points. That cohort represents mid-term holders who hold coins for weeks to months.

Month-on-month price change was roughly +2% for Bitcoin and about -8% for Ether, producing a roughly 10 percentage-point gap between the two assets.

Until a daily close below $2,087 occurs, the inverted cup-and-handle pattern remains unconfirmed and the current handle bounce stays possible.