The price of Ethereum is blocked at the $2000 mark and the CLARITY bill is stagnant. Can the $1800 b

Ethereum prices fell back to $1,820, dragged down by a blocked rebound and unclear bill prospects.

On July 17, Ethereum prices fell 3.5% to $1,820 after their recent rebound was blocked at the $2,000 mark. In addition, the Democratic Party's insufficient support for the CLARITY Act has also frustrated the overall sentiment in the cryptocurrency market.

Summary

Ethereum prices fell 3.5% after failing to break through the US$2,000 resistance level. Democratic Party's weak support for the CLARITY Act has hit market sentiment and triggered leverage liquidation. ETH needs to stand back at $1,875, while falling below $1,800 may face a deeper decline.

data shows that Ethereum has since recovered to about $1,835, but the short positions have erased most of the gains earlier this week when the price rose to $1,940. Reports say Senate Democrats do not currently support the market structure bill, making its hopes of receiving the 60 votes needed to pass even more remote. Democratic lawmakers have called for conflict of interest limits on cryptocurrency assets held by President Trump before supporting the bill. Analysts believe the bill has less than 30% chance of passing this year, and Congress is narrowing its window before its August recess.

Meanwhile, data shows that more than US$400 million in leveraged cryptocurrency positions have been liquidated in the past 24 hours. ETH's three-day liquidation heat chart shows intensive leverage around $1,800 to $1,810, an area that is below the current price of Ethereum. On the upside side, clearing clusters are concentrated around US$1,845 to US$1,860, while the largest upward pressure occurs in the area of approximately US$1,950 to US$1,960.

Therefore, if the price exceeds US$1,860, it may accelerate towards US$1,950; but if it falls below US$1,800, it may trigger a new round of long liquidation.

The U.S. spot Ethereum ETF provided only limited support. In the week ended July 11, the funds attracted $84.42 million in inflows, ending eight consecutive weeks of net outflows, but Fidelity's FETH recorded a withdrawal of $15.4 million on July 13. Although ETH has rebounded from a low of about $1,500 at the end of June, demand for ETFs remains uneven.

Economic data also brings pressure. The number of initial jobless claims fell to 208,000 last week, a two-month low. Retail sales rose 0.2% in June and core sales rose 0.5%, prompting some economists to raise their second-quarter economic growth forecasts to 2.4%. These data lowered market expectations for the Federal Reserve to aggressively cut interest rates. The 10-year Treasury yield rose to 4.596%, and the two-year Treasury yield reached 4.179%, raising the opportunity cost of holding risky assets such as Ethereum.

Ethereum needs to stand at $1,875 again before it can challenge $2,000 again.

Ethereum's daily chart shows that the rebound lost momentum after hitting about $1,940. ETH has now fallen back to a breakthrough level of $1,832, which suppressed multiple rebound attempts in June and early July.

Daily momentum is still positive, but has begun to weaken. The MACD line is at 35.22, the signal line is at 18.11, and the histogram is still above the zero axis, reporting 17.11. The Relative Strength Index has slipped to 56.06 and fell below its moving average of 57.53, indicating that buyers have lost some control but has not yet put ETH in a bearish trend.

On the four-hour chart, ETH has fallen below the middle track of the Bollinger Band by US$1,874. The lower rail is located near $1,796, constituting the next volatilism-based support, while the upper rail is located at $1,952, close to the psychological level of $2,000.

The fund flow indicator is still positive at 0.17, indicating that funds have not completely left the market. Buyers need to recover $1,875 first and clear the $1,940 to $1,952 area before ETH can challenge the daily resistance level of $2,006. If the daily line successfully closes at this level, it will open the next major chart resistance level of around US$2,225.

Closing below $1,800 puts a rebound at risk

Analysts pointed out that Ethereum has entered an important support area after giving up recent gains. They said ETH needs to have a daily close above $1,850 or it will give up all short-term gains.

Failure to hold the US$1,800 to US$1,832 region will strengthen the bearish reason and may hit the four-hour Bollinger lower trajectory of around US$1,796. After falling below that level, the daily structure left room for prices to fall to US$1,715, followed by a June support area of US$1,550 to US$1,600.

Therefore, a bullish scenario requires ETH to close above US$1,850 and then recover to US$1,875. If ETFs continue to experience capital outflows, Treasury yields rise, technology stocks fall again, or the CLARITY Act is further delayed, this path will be invalidated and $2,000 will be out of reach.