US Treasury’s Crypto Crackdown: Will Ethereum Withstand the Tornado Cash Fallout?

Paul Grewal, Coinbase’s Chief Legal Officer, has criticized the US Treasury for handling Tornado Cash sanctions. He is concerned about the lack of transparency in the SDN list delisting process. He claims that developers and users have no clear path to challenge or reverse sanctions. It highlights the ongoing conflict between authorities and the crypto industry, especially with tools like Tornado Cash. With ETH linked to this dispute, investors are watching how regulations may affect Ethereum price prediction.

Coinbase CLO Paul Grewal Criticized US Treasury

Paul Grewal criticized the U.S. Treasury’s firm stand on Tornado Cash. The government claims Tornado Cash was being used for money laundering. However, Grewal claims that punishing open-source software without proper due process causes legal confusion. He claims that the US Treasury has not provided a fair process for sanctioned firms to appeal or be removed from the SDN list.

This lack of clarity raises concerns about regulatory expansion and the sustainability of DeFi. Crypto advocates warn that strict rules may impede innovation and limit blockchain privacy tools. While regulators describe their efforts as vital for financial stability, the crypto industry sees them as a threat to decentralization. As the legal battle proceeds, investors keep a careful eye on Ethereum price prediction.

Ethereum Breaks Key Resistance at $2,019.82 After Strong Uptrend

The trading day of March 23rd continued the previous day’s golden cross-driven upward trend. Overbought conditions appeared at 1:55 UTC, 2:50 UTC, and 3:40 UTC, signaling strong momentum. However, a death cross at 4:00 UTC suggested a potential downward move. The price dipped slightly but remained resilient, with a golden cross at 5:50 UTC pushing it upward. A resistance formed at $2,019.82, leading to fluctuations. A death cross at 14:15 UTC triggered a downward trend that lasted until 23:10 UTC when another golden cross signaled recovery, extending into March 24th.

Chart 1, Analyzed by ShwetaCW, published on TradingView, March 24, 2025

As illustrated in Chart 1, at 00:30 UTC, Ethereum attempted to break resistance amid an overbought condition but failed, leading to a brief decline after a death cross at 00:50 UTC. However, a golden cross at 2:05 UTC initiated another rally with overbought conditions appearing at 3:20 UTC. By 4:35 UTC, Ethereum successfully broke resistance, continuing its upward trend with multiple overbought signals until 7:15 UTC.

The price then established a new resistance at $2,075.95. According to Ethereum price prediction, if bullish momentum continues it could break past $2,075.95. However, if selling pressure increases, the price might retrace to the previous resistance level of $2,019.82 now acting as support.

What Next for ETH’s Price Action

The US Treasury’s stance on Tornado Cash has reignited regulatory concerns in the crypto space. Despite this Ethereum remains resilient, breaking key resistance levels. Institutional interest and market sentiment continue to drive its movement. According to Ethereum price prediction, if bullish momentum continues, it could break the $2,075.95 resistance and aim for higher levels. However, if regulatory fears trigger selling pressure, ETH might retest support near $2,019.82. As debates around Tornado Cash persist, traders will closely monitor how the US Treasury’s policies impact Ethereum’s long-term market trends.

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