Ethereum prepares for CLARITY vote as bulls defend key support

Ethereum rose 1.8% to $1,845 after Congressman Brian Still raised expectations for next week’s Senate vote on the Clarity Act, while ETF inflows and solid chart support kept traders cautiously bullish.

Still, who chairs the House Digital Assets and Financial Services Subcommittee, told FOX Business the bill could be introduced to the full Senate as early as next week. Can be installed in the aisle $ETH Establishes federal regulations for their trading and monitoring under the Digital Goods Framework.

At a July 17 hearing, Steil urged lawmakers to complete the bill as the Senate prepares to consider it. “Let’s pass CLARITY,” he said in remarks released by the House Financial Services Committee.

Polymarket traders raised the probability of the bill becoming law in 2026 to 39% from 30% on July 17th. However, due to unresolved disputes over ethics rules and stablecoin yields, that probability remains below 50%.

The flow within the organization has also improved. The Spot Ethereum ETF attracted $105 million from July 13 to July 17, the largest weekly inflow since April, according to SoSoValue data.

Ethereum’s decentralized financial activity has grown alongside the demand for ETFs. DeFiLlama estimates the network’s total value at around $40.5 billion, up from around $36 billion at the beginning of July. The network also processed $978.9 million in decentralized trading volume and 2.46 million transactions in the past 24 hours.

Ethereum needs to clear $1,854 to reopen path to $1,947

Ethereum’s daily chart shows a double bottom structure forming near $1,511 with a neckline near $1,847. $ETH After briefly rising to $1,947, it returned to test the neckline and is now aligned with the 0.786 Fibonacci retracement at $1,853.82.

A daily close above $1,854 would reactivate the 100-day exponential moving average near recent highs of $1,947 and $1,939. The target for the double-bottom structure is around $2,180, but crypto analyst Michael van de Poppe expects it to move between $2,200 and $2,400 if the support at $1,780 holds.

Although the pace has slowed, daily momentum remains in favor of buyers. The MACD line is at 35.57, above the 21.69 signal line, but the positive histogram has narrowed to 13.88. The relative strength index is 57.15; $ETH below overbought territory.

On the 4-hour chart, Ethereum ($ETH) remains within the upward channel that has guided the recovery since late June. Its lower bound and previous supertrend support reach around $1,830, while the upper bound stretches towards $2,040. Chaikin Money Flow remains positive at 0.07, but the supertrend active resistance at $1,908 needs to fall before buyers retest July highs.

In CoinGlass’ 48-hour liquidation heatmap, the closest high-density leverage cluster is located between $1,860 and $1,870. More positions are around $1,900, while downside liquidity is accumulating around $1,810 and $1,790.

The $1,820-$1,850 region will make the decision, according to analyst Ted Pillows. $ETH‘s next move.

“If Ethereum breaks above that, we can expect a further uptrend towards $1,950-$2,000.”

Ethereum’s recovery weakens below $1,780

If sellers force a close below $1,830, Ethereum will lose the channel for 4 hours. Such a move could expose the 50-day EMA near $1,812 and trigger a leveraged long liquidation near $1,810.

A deeper decline below the 61.8% Fibonacci level at $1,780.64 would weaken the double bottom setup and open the 50% retracement at $1,729.24. Pillows also cited the escalating situation in the US and Iran as a risk to the $1,820-$1,850 support zone.

Political uncertainty also remains a risk of nullification. Failure to resolve the ethics and stablecoin provisions of the CLARITY Act could delay the Senate vote and eliminate the immediate impetus behind it. $ETHwill rebound, putting new pressure on the support at $1,780.