Ethereum Price Holds Key Support as CLARITY Act Vote Fuels Bullish Outlook

Ethereum (ETH) gained about 1.8% on July 18 as investors reacted to growing optimism that the U.S. Senate could soon vote on the CLARITY Act, a bill that may classify Ethereum as a digital commodity. The proposed legislation has boosted expectations of stronger institutional participation and improved regulatory clarity, helping support ETH despite recent market volatility.

At the time of writing, Ethereum traded near $1,845 while testing support at its 50-day exponential moving average (EMA) around $1,812. Buyers have continued to defend this level, keeping the broader bullish trend intact.

Speaking to FOX Business, U.S. Representative Bryan Steil, Chair of the House Administration Committee, said the Senate could bring the CLARITY Act to the floor for a vote during the week of July 20–24. He added that passing the legislation could help the United States establish a global benchmark for cryptocurrency regulation. Reports also indicate that the bill’s final text may be released next week, potentially including revisions related to ethics provisions and stablecoin yields.

Market sentiment has strengthened alongside these developments. Prediction platform Polymarket shows the probability of the CLARITY Act passing in 2026 rising from 30% on July 17 to 42%, reflecting growing investor confidence.

From a technical perspective, Ethereum remains in a favorable position as long as it stays above the 50-day EMA. Holding this support could pave the way for a move toward the 100-day EMA near $1,939. If bullish momentum accelerates, analysts believe ETH could target $2,244, supported by a developing double-bottom pattern on the daily chart. The Relative Strength Index (RSI) currently sits at 57 and continues to trend higher, indicating strengthening buying pressure.

However, a break below the $1,812 support could shift momentum in favor of sellers, exposing Ethereum to a decline toward the 20-day EMA around $1,791, particularly if lawmakers fail to advance the CLARITY Act.

Institutional demand also continues to improve. According to SoSoValue, U.S. spot Ethereum ETFs recorded $105 million in net inflows between July 13 and July 17, marking their strongest weekly inflow since April 2026. Meanwhile, DeFiLlama data shows Ethereum’s total value locked (TVL) has climbed from $36 billion at the start of July to more than $40 billion, its highest level since May, highlighting renewed confidence in the Ethereum ecosystem.