Ethereum Price Rises After SCOTUS Ruling: Here’s Why a Drop to $1,500 is Possible

Ethereum price rose by 2.20% today, February 20, mirroring the performance of other coins, which rose after the Supreme Court ruled against Donald Trump’s tariffs. ETH price rose to $1,965, up by 12% from its lowest level this year. Still, these gains could be short-lived as risks remain.

Ethereum Price Rose After SCOTUS Ended Donald Trump’s Tariffs 

Ethereum and the crypto market rose after the Supreme Court ruled that Donald Trump’s tariffs were illegal, dealing him a major setback. Precisely, the court noted that the International Emergency Powers Act (IEPA) did not give him power to impose tariffs. Instead, it gave the president the power to control imports entering the country.

Ethereum and other assets rose because ending the tariffs may help to lower inflation and boost economic growth in the country. Such a move would then empower the Federal Reserve to cut interest rates, a move that would boost risky assets like stocks and cryptocurrencies.

However, ending the tariffs means that the US budget deficit will continue to widen in the coming years, a notable thing considering that the US debt has surged in the past few years to over $37 trillion. Tariffs would have helped to reduce the deficit by over $4 trillion.

Still, Ethereum price may still resume the downward trend for several reasons. For example, Trump still has options to implement tariffs, including using section 232 to address national security concerns, 301 to remedy unfair foreign trade practices, and 338 to penalize countries that discriminate against US commerce.

The other main risk is that Trump is considering to attack Iran, a move that will lead to more volatility in the crypto market. It will also lead to higher inflation, which may make it hard for the Federal Reserve to cut interest rates in the near term.

ETH Price Prediction: Technical Analysis 

The daily timeframe chart shows that the ETH value has slumped in the past few months, moving from the all-time high of $4,950 to the current $1,958. It has moved below the important support level at $2,620, its lowest level in November last year.

Most importantly, Ethereum has formed a bearish pennant pattern, a common bearish continuation sign, which is made up of a vertical line and a symmetrical triangle. It is now forming the triangle section, with the two lines nearing their confluence.

Therefore, the most likely ETH price forecast is bearish, with the next key target being the psychological level at $1,500. 

On the flip side, a move above the important resistance level at $2,200 will invalidate the bearish outlook.