The failure of the CLARITY bill in the U.S. Senate has weighed heavily on Ethereum’s price. The legislation failed to reach the required 60 votes of support - securing only 49 to 50 votes - instantly dampening hopes for regulatory clarity. As a result, Ethereum suffered consecutive declines from its previous $2,660 level to trade around $2,421 on September 16, 2026.
Losing the $2,450 psychological support level proved costly for traders. Leveraged long positions were forcibly closed, making Ethereum the dominant contributor to a $250 million wave of crypto liquidations. The sell-off briefly dragged prices down to a low of $2,382.70 during Tuesday’s session before the lower Bollinger Band at $2,384.30 acted as a cushion, preventing a steeper drop.
Two Resistance Zones Block Recovery
Although the downward momentum has temporarily paused, upward movement remains capped within a narrow range. The immediate hurdle comes from the middle Bollinger Band at $2,464.49. If buyers break through this level, they will still face the Supertrend resistance at $2,526.61. Until the price clears $2,526, the short-term downtrend remains firmly in control.
Multiple technical indicators confirm fading buying appetite. The daily Relative Strength Index (RSI) sits at 52.09. While this remains above the neutral 50 threshold, it has steadily retreated from its moving average at 61.02 after exiting overbought territory. The Chaikin Money Flow indicator on the four-hour chart also shows capital inflows that are too weak to sustain a rebound.
Taking Shelter Ahead of Interest Rate Decision
Weak buying interest reflects a defensive stance among major investors ahead of the upcoming Federal Reserve meeting. A report from institutional infrastructure provider Talos highlighted a 28% surge in net buying tilt directed exclusively toward stablecoins. This marks a sharp reversal from the previous Federal Open Market Committee (FOMC) meeting, which saw an 8% net selling tilt for stablecoins.
Appetite for accumulating Ethereum ahead of the interest rate decision also plummeted from 23% to just 9%. While hedge funds maintained a 25% net buying position, quantitative and systematic fund managers uniformly rotated their holdings into net selling positions.
Market participants view the benchmark interest rate trajectory as the key driver for year-end performance. Stephen Wundke of Algoz noted that the probability of the Fed raising interest rates by 25 basis points has reached 93%. Should the central bank deliver a hawkish statement, Wundke expects Bitcoin could move to retest the $63,000 level - an outcome supported by historical data showing October and November as two of the strongest-performing months.
For market participants, current conditions warrant extra caution. Remaining trapped below the $2,464 resistance level suggests traders are reluctant to deploy fresh capital without clear monetary policy direction from the United States.
Reported by crypto.news.
Read also: How Crypto Staking Works and Its Risks
Previously: Ethereum Held Below $2,550 on Weak Buying as 89% of Market Bets on Fed Rate Hike
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
