Ethereum has risen 1.8% to $1,845 after Rep. Bryan Steil raised hopes for a Senate vote on the CLARITY Act next week, while ETF inflows and firm chart support kept traders cautiously bullish.
Steil, who chairs the House Financial Services Subcommittee on Digital Assets, told FOX Business that the bill could reach the Senate floor in the coming week. Passage could place $ETH under a digital commodity framework and establish federal rules for its trading and oversight.
During a July 17 hearing, Steil urged lawmakers to complete the legislation as the Senate prepares to consider it. “Let’s pass CLARITY,” he stated in remarks published by the House Financial Services Committee.
Polymarket traders raised the probability of the bill becoming law in 2026 to 39% from 30% on July 17. However, unresolved disputes over ethics rules and stablecoin yields have kept the odds below 50%.
Institutional flows have also improved. SoSoValue data showed that spot Ethereum ETFs attracted $105 million between July 13 and July 17, their strongest weekly inflow since April.
Ethereum’s decentralized finance activity has grown alongside the ETF demand. DeFiLlama placed the network’s total value locked at about $40.5 billion, up from roughly $36 billion at the start of July. The network also processed $978.9 million in decentralized exchange volume and 2.46 million transactions over the past 24 hours.
Ethereum must clear $1,854 to reopen the path toward $1,947
Ethereum’s daily chart shows a double-bottom structure formed around $1,511, with the neckline near $1,847. $ETH briefly climbed to $1,947 before returning to test the neckline, which now overlaps with the 0.786 Fibonacci retracement at $1,853.82.
A daily close above $1,854 would place the recent $1,947 high and the 100-day exponential moving average near $1,939 back in play. The double-bottom structure has a measured target near $2,180, while crypto analyst Michaël van de Poppe expects $2,200 to $2,400 if the $1,780 support remains intact.
It’s incredibly more likely that we’ll start to see $ETH at $2,000+ in the near future.
The asset is running a new upwards trend and flipping previous resistance levels for support.
I don’t think things should be overcomplicated, and on the lower timeframe levels, it’s clearly… pic.twitter.com/h7OAoppiec
— Michaël van de Poppe (@CryptoMichNL) July 18, 2026
Daily momentum still favors buyers, although the pace has slowed. The MACD line stands at 35.57, above the 21.69 signal line, while the positive histogram has contracted to 13.88. The relative strength index sits at 57.15, leaving $ETH below overbought territory.
On the 4-hour chart, Ethereum ($ETH) remains inside an ascending channel that has guided the recovery since late June. Its lower boundary and the previous Supertrend support meet around $1,830, while the upper boundary extends toward $2,040. Chaikin Money Flow remains positive at 0.07, but the active Supertrend resistance at $1,908 must fall before buyers can retest the July high.
CoinGlass’ 48-hour liquidation heatmap places the nearest dense leverage cluster between $1,860 and $1,870. More positions sit around $1,900, while downside liquidity has accumulated near $1,810 and $1,790.
According to analyst Ted Pillows, the $1,820–$1,850 region will decide $ETH’s next move.
“If Ethereum holds above it, expect another uptrend towards $1,950–$2,000.”
A break below $1,780 would weaken Ethereum’s recovery
Ethereum would lose its 4-hour channel if sellers force a close below $1,830. Such a move would expose the 50-day EMA near $1,812 and could trigger leveraged long liquidations around $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 U.S.-Iran situation as a risk to the $1,820–$1,850 support zone.
Political uncertainty remains another invalidation risk. Failure to resolve the CLARITY Act’s ethics and stablecoin provisions could delay a Senate vote, remove the immediate catalyst behind $ETH’s rebound, and place the $1,780 support under renewed pressure.
