Ethereum Price Tumbles as CLARITY Act Faces Uncertain Future

Ethereum's price has taken a hit, falling by as much as 3.5% to $1,820 on July 17, after its recent rally stalled below the crucial $2,000 mark.

The dip comes amid weak Democratic support for the CLARITY Act, which is seen as essential for Ethereum's price action. The bill has been met with opposition from Senate Democrats due to concerns over conflict-of-interest restrictions tied to President Donald Trump's crypto holdings.

As a result, analysts now assign the bill less than a 30% chance of passing this year, according to Barron's. This uncertainty has weighed heavily on Ethereum's price, causing leveraged liquidations totaling more than $400 million over the past 24 hours, as per CoinGlass data.

Chaikin Money Flow remains positive at 0.17, indicating that capital has not fully left the market. However, for Ethereum to challenge its daily resistance at $2,006 and reach the next major chart barrier near $2,225, buyers must recover $1,875 and clear the $1,940-$1,952 area.

Failure to hold this support zone would strengthen the bearish case, exposing a decline towards $1,715, followed by the June support region between $1,550 and $1,600.