The bill may go to the Senate floor next week, according to Steil, the chair of the House Financial Services Subcommittee on Digital Assets, who spoke with FOX Business. Adoption might create government regulations for ETH’s trade and regulation and put it within a digital commodities framework.
As the Senate gets ready to discuss the proposal, Steil encouraged legislators to finish it during a session on July 17. In comments released by the House Financial Services Committee, he said, “Let us pass CLARITY.”
Polymarket traders increased the likelihood that the plan will become law in 2026 from 30% on July 17 to 39%. However, the probabilities have remained below 50% due to unresolved disagreements over stablecoin yields and ethics regulations.
Additionally, institutional flows have improved. According to SoSoValue data, spot Ethereum ETFs saw their biggest weekly inflow since April, drawing $105 million between July 13 and July 17.
The demand for ETFs has increased in tandem with Ethereum’s decentralized finance activity. The network’s entire value was estimated by DeFiLlama to be $40.5 billion, up from nearly $36 billion at the beginning of July. Over the previous day, the network processed 2.46 million transactions and $978.9 million in decentralized exchange traffic.
Ethereum must clear $1,854 to reopen the path toward $1,947
A double-bottom structure built at $1,511 is seen on Ethereum’s daily chart, with the neckline close to $1,847. Before coming back to test the neckline, which now intersects with the 0.786 Fibonacci retracement at $1,853.82, ETH briefly rose to $1,947.
The recent $1,947 high and the 100-day exponential moving average around $1,939 would be back in play if the daily close was over $1,854. Crypto expert Michaël van de Poppe anticipates $2,200 to $2,400 if the $1,780 support holds, while the double-bottom structure has a measured objective close to $2,180.
Although the pace has slowed, buyers continue to benefit from daily momentum. The positive histogram has shrunk to 13.88, and the MACD line is at 35.57, above the 21.69 signal line. With a relative strength index of 57.15, ETH is below overbought.
Ethereum is still in an ascending channel on the 4-hour chart, which has led the rebound since late June. Its upper limit reaches $2,040, while its lower boundary and the prior Supertrend support converge at $1,830. The current Supertrend resistance at $1,908 must drop before buyers can revisit the July high, although Chaikin Money Flow is still positive at 0.07.
According to CoinGlass’ 48-hour liquidation heatmap, the closest dense leverage cluster is located between $1,860 and $1,870. While downside liquidity has built up around $1,810 and $1,790, more holdings are located around $1,900.
A break below $1,780 would weaken Ethereum’s recovery
Sellers forcing a closing below $1,830 would cause Ethereum to lose its 4-hour channel. A rise like this might lead to leveraged long liquidations around $1,810 and expose the 50-day EMA near $1,812.
The double-bottom setup would be weakened by a deeper drop below the 61.8% Fibonacci level at $1,780.64, opening the 50% retracement at $1,729.24. Pillows also mentioned the growing tension between the United States and Iran as a threat to the $1,820–$1,850 support range.
Another risk of invalidation is political unpredictability. If the ethical and stablecoin sections of the CLARITY Act are not resolved, a Senate vote may be postponed, the immediate impetus for ETH’s recovery may be removed, and the $1,780 support may come under fresh strain.
