Ethereum sits at $2,125 after breaking key technical patterns this week, with $2,100 now critical. DeFi TVL on the network has collapsed 41% since mid-January to $63 billion as on-chain activity weakens and bond yields climb.
Technical Breakdown at Hand
That triangle structure CryptoQuant flagged is now broken. Traders watched ETH dip below $2,130 earlier today. The daily RSI sits below 30—oversold but not reversed yet. If $2,100 fails, analysts warn ETH could plunge to $1,350 support. The ETH/BTC pair stalled at 0.0325 resistance, showing clear weakness against Bitcoin.
DeFi's Deepening Doldrums
TVL falling from $106 billion to $63 billion tells the story here. It’s the steepest drop since January. Bond yields rising in Japan and elsewhere are pulling cash out of DeFi as risk-free returns get competitive. On top of that, recent exploits keep traders skittish. The timing isn’t great with on-chain metrics still sliding.
June Vote Offers Regulatory Hope
The CLARITY Act’s Senate vote in June 2026 could shift things. This bill may finally bring clarity to Ethereum’s regulatory status. It’s the one bright spot in an otherwise grim technical picture. If it passes, it might soften the bond yield pressure for DeFi protocols.
