Positive sentiment surrounding next week’s anticipated vote on the CLARITY Act regulatory bill has provided fresh momentum for Ethereum (ETH). The world’s second-largest cryptocurrency by market capitalization gained 1.8%, holding firmly around $1,845. The rise underscores market participants’ swift response to regulatory developments that could bring legal clarity to the digital asset industry.
The price rally is not purely speculative, as it is also backed by massive institutional capital inflows. According to latest data from SoSoValue, spot Ethereum ETFs recorded impressive net inflows of $105 million during the trading period from July 13 to July 17, 2026. This milestone marks the strongest weekly inflow recorded since April, signaling a revived risk appetite among institutional investors for the Ethereum ecosystem.
Strong Signals Toward the Senate
Market anticipation is heating up as crucial weeks for US crypto regulation approach. Rep. Bryan Steil, Chairman of the House Financial Services Subcommittee on Digital Assets, recently voiced optimism regarding the bill’s future. He expressed confidence that the CLARITY Act has a very promising chance of advancing to a Senate vote in the near future.
Growing public confidence in potential regulatory clarity is also visibly reflected on prediction market platforms. According to betting data compiled from Polymarket as of July 17, the probability of the CLARITY Act officially passing into law in 2026 has surged significantly. Bettors’ forecast jumped from 30% to 39%, representing a notable shift in market sentiment.
Measuring Buying Momentum Strength
Shifting from politics to a technical perspective, Ethereum’s current price action also presents promising signs. The daily MACD on Ethereum’s chart sits firmly at 35.57, comfortably above its signal line at 21.69. Meanwhile, the Relative Strength Index (RSI) is hovering stably at 57.15. The combination of these two technical indicators signals steady and sustained buying momentum to traders, without flashing extreme overbought conditions.
Despite the prevailing tailwinds, high vigilance remains essential for ETH holders. Veteran crypto market analyst Ted Pillows specifically highlighted the $1,820 to $1,850 range. In his analysis, this price zone has historically served as a crucial support area for sustaining Ethereum’s upward trajectory.
Stakes at Critical Support Levels
Furthermore, Pillows issued a firm warning regarding potential downside risks. Should Ethereum fail to hold its ground at this critical support zone - particularly if triggered by unforeseen political obstacles hindering the CLARITY Act’s passage - such vulnerability could spark a sharp correction. A technical rejection driven by negative sentiment could drag ETH lower toward the next support level at $1,780. Lawmakers’ final decisions in the coming days will likely dictate the next direction for the pioneer smart contract asset.
Sourced from crypto.news.
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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.
