Ethereum prepares for CLARITY vote, and bulls hold on to key support

Summary

Ethereum rose 1.8% to $1,845 after Rep. Bryan Steele raised hopes for a Senate vote on the CLARITY bill next week, while inflows of ETF funds and solid chart support kept traders cautiously bullish.

Ethereum rose 1.8% as Brian Steele raised hopes for a vote on the CLARITY bill next week.

Weekly inflows of spot Ethereum ETF reached US$105 million, the highest since April.

ETH must hold on to $1,830 and break past $1,854 to target the $1,947 resistance zone.

Steele, who chairs the House Financial Services Digital Assets Subcommittee, told Fox Business Channel that the bill could reach the Senate next week. If passed, ETH will be placed under the digital goods framework and establish federal rules for its trading and regulation.

At a July 17 hearing, Steele urged lawmakers to complete the legislation as the Senate prepares to consider the bill. "Let's pass the CLARITY bill," he said in a speech to the House Financial Services Committee.

Polymarket traders have increased the likelihood of the bill becoming law in 2026 from 30% to 39% to 39%. However, unresolved disputes over ethical rules and stablecoin gains keep this probability below 50%.

Institutional capital inflows also improved. SoSoValue data showed that between July 13 and 17, the spot Ethereum ETF attracted $105 million in funds, the largest weekly inflow since April.

Ethereum's decentralized financial activity has also grown with ETF demand. DeFiLlama data shows that the network's total locked positions are about $40.5 billion, up from about $36 billion in early July. The network also processed $978.9 million in decentralized exchange transactions and 2.46 million transactions in the past 24 hours.

Ethereum must exceed $1,854 to reopen the path to $1,947

Ethereum daily chart shows a double bottom structure formed around $1,511, with the neckline around $1,847. ETH briefly rose to $1,947 before falling back to test the neckline, which now overlaps with the 0.786 Fibonacci retracement level of $1,853.82.

A daily close above $1,854 will bring the recent high of $1,947 and the 100-day exponential moving average (approximately $1,939) back into view. The measurement target for the double bottom structure is close to $2,180, while cryptocurrency analyst Michaël van de Poppe expects the target to reach $2,200 to $2,400 if the $1,780 support remains intact.

Daily momentum is still favorable to the bulls, but the pace has slowed down. The MACD line is at 35.57, higher than the signal line at 21.69, while the positive histogram shrinks to 13.88. The relative strength index is 57.15, and ETH has not yet entered the overbought area.

On the 4-hour chart, Ethereum is still in the rising channel that has guided the rebound since the end of June. Its lower boundary coincides with previous supertrend support around $1,830, while the upper boundary extends to $2,040. The flow of funds indicator remains positive at 0.07, but the active supertrend resistance level of $1,908 must be breached before bulls can retest their July highs.

CoinGlass's 48-hour liquidation heat chart shows that the most recent dense leveraged clusters are between $1,860 and $1,870. More positions were concentrated around $1,900, while downward liquidity accumulated around $1,810 and $1,790.

analyst Ted Pillows said that the US$1,820 to US$1,850 region will determine the next move of ETH. "If Ethereum holds the area, it is expected to rise again to $1,950 to $2,000."

A break below $1,780 will weaken Ethereum's rally

If short positions force the close below $1,830, Ethereum will lose its 4-hour channel. This would expose the 50-day EMA (approximately $1,812) and could trigger leveraged long liquidations around $1,810. A deeper decline below the 61.8% Fibonacci level of $1,780.64 would weaken the double bottom pattern and open the 50% retracement level of $1,729.24. Pillows also mentioned that the escalation of the situation between the United States and Iran poses a risk to the US$1,820 to US$1,850 support area.

Political uncertainty remains another failure risk. Failure to resolve the ethics and stablecoin provisions of the CLARITY bill could delay a Senate vote, remove an immediate catalyst for an ETH rebound, and put new pressure on the $1,780 support level.