 ▲ Ethereum (ETH), XRP / ChatGPT-generated image |
The Donald Trump administration has played its card to lower key import tariffs, stimulating expectations of easing inflation and potential interest rate cuts. At the same time, Ethereum (ETH) and XRP have entered a consolidation phase that could lay the groundwork for a sharp rally.
According to multiple foreign media outlets including Decrypt and CryptoNews on February 13 (local time), the Trump administration is actively considering lowering the high tariffs imposed on steel and aluminum to address the domestic cost-of-living crisis. If the current tariffs, which stand at around 50%, are reduced, pressure on consumer prices is expected to ease, potentially pushing the Federal Reserve toward cutting interest rates. The administration’s policy shift is acting as a strong macroeconomic tailwind that could accelerate liquidity inflows into the digital asset market.
Ethereum has continued its downward trend in recent months, trading near the $2,000 level. However, technical indicators are signaling a strong potential reversal. Weekly chart analysis shows that Ethereum is forming a classic bullish reversal pattern known as an inverse head-and-shoulders. In particular, the Relative Strength Index (RSI) has fallen to its lowest level since April last year, entering oversold territory. The Average Directional Index (ADX) has also declined, indicating weakening downward momentum. Market analysts suggest that if Ethereum breaks above the $2,000 resistance level, it could stage a steep rally toward $3,000.
XRP is also forming a falling wedge pattern, signaling a potential rebound based on technical analysis. Although XRP is currently trading around $1.40—significantly below its all-time high of $3.6580—the RSI has dropped to around 30, its lowest level since 2022, indicating that it has reached a bottom zone. Historically, XRP has recorded strong rebounds whenever indicators reached this level. If it successfully breaks above the upper boundary of the falling wedge, the price could surge to the $2 range in the short term.
The Trump administration’s pragmatic trade policy is creating a favorable environment for the digital asset market. Efforts to stabilize prices through tariff reductions could ultimately bring forward the timing of interest rate cuts, serving as a driving force for gains in major assets, including Bitcoin (BTC). Investors are focusing less on short-term price fluctuations and more on the macro-level liquidity changes driven by policy shifts, positioning themselves early in high-quality assets.
Ultimately, the digital asset market stands at a turning point where oversold technical indicators and policy tailwinds intersect. If the bullish reversal patterns formed by Ethereum and XRP are completed, they are likely to end their prolonged correction phases and enter a new upward cycle. As clearer signs of cooling inflation emerge, market leadership is expected to shift back to well-prepared, high-quality altcoins.
Disclaimer: This article is for investment reference only and we are not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.