Ethereum Price Near Key $2,113 Level, Rally or Sharp Correction Ahead?

Highlights:

• Ethereum range-bound between $1926.5 and $2113.9 
• Narrowing range points to a possible breakout in the short term
• Upcoming US Supreme Court ruling on tariffs could trigger a breakout

Ethereum (ETH) is slightly in the red today, down by a negligible 0.81% intraday to trade at $1966.85. Ethereum trading volumes are also down intraday. They currently stand at $18.44 billion, down by 5.61% in the day. The drop in volume alongside the price indicates that investors are still sitting on the sidelines, waiting for the price to show direction. 

This is likely due to the price action across the cryptocurrency market. Bitcoin, the main market driver, is signalling an intraday rebound. However, since this price action has been seen repeatedly recently, investors are cautious about jumping into altcoins. This explains why there is little to no price action around Ethereum at the moment. However, Ethereum is also being kept on the edge by macro issues. 

Supreme Court Ruling on Trump Tariffs Could Determine Ethereum’s Direction

Later today, February 20, the Supreme Court is expected to rule on whether Trump’s use of emergency powers to impose tariffs is legal. If the court rules that such a move is illegal, markets could rally across the board. That’s because it would ease inflation fears and push capital into risk-on assets. Since Ethereum and other cryptocurrencies are already trading at depressed price levels, this could see Ethereum go parabolic in the short to medium term. Another macro factor that could boost Ethereum’s upside potential is the Clarity Act.

Update:

The U.S. Supreme Court has an opinion‑release day scheduled for today, Feb 20, where it could issue the long‑anticipated ruling on the legality of President Trump’s tariff authority – specifically whether tariffs under the International Emergency Economic Powers Act… pic.twitter.com/nObQewlKbS

— ₿εKα (@beka_web3) February 20, 2026

Hopes for Progress on Clarity Act Could Send Ethereum Higher

When hopes were high that the Clarity Act would pass in January or early February, the cryptocurrency market began performing well. However, when consensus failed on stablecoins, weakness crept back in. Now, this hope is returning after it emerged that the Clarity Act could become a reality as early as April. This comes after news that the White House had set a March 1 deadline for key players to agree on the way forward for stablecoins.

Industry insiders, including Coinbase, have expressed optimism that the bill will pass. This renewed optimism could see Bitcoin rally back to $90k in the short term. By extension, Ethereum and other major altcoins could follow as well.

Developments on the Ethereum Protocol Could Support Price

Development works by the Ethereum Foundation are another factor that could help push Ethereum higher in the short to medium term. While 2025 saw lots of progress, particularly on gas fees, 2026 is set to be bigger. One of the developments the Ethereum Foundation is set to accomplish this year is scaling gas limits to over 100 million. 

At the same time, there is a team now focused on making Ethereum quantum-proof going forward. This is a big deal given that quantum computers are increasingly moving from the lab to real-world use and could upend existing encryption systems. As such, early steps towards making Ethereum quantum-resistant are likely to boost investor confidence going forward. All these developments, coming at a time when capital entering the cryptocurrency space is increasingly concentrated around Bitcoin and Ethereum, could push the price higher over time. 

Technical Analysis – Ethereum Price on the Verge of a Breakout

Ethereum is trading in an increasingly narrow range between the $2113.9 resistance and $1926.5 support. If bulls take control and push Ethereum through the $2113.9 resistance, a rally to $3013.3 could follow. On the other hand, if bears take control and push Ethereum below the $1926.5 support, a price correction to as low as $1500 could follow.

How Ethereum breaks out depends largely on how the Supreme Court will rule on the tariffs. If they rule that the tariffs are illegal, a rally to $3013.3, or higher, could follow. On the other hand, if they rule that the tariffs stand, a correction to $ 1,500, or even lower, could follow.