Ethereum recovered to about $2,421 on Sep. 16 after a sell-off tied to the failed CLARITY Act vote pushed it toward support near $2,380-$2,400. Traders now watch the Fed's rate decision, since a hawkish surprise could send ETH lower while a dovish outcome could support a bounce toward resistance near $2,526.
Ethereum rebounds after CLARITY Act setback
Ethereum recovered to about $2,421 on Sep. 16, rising roughly 0.95% from its daily open after an intraday low of $2,382.70, according to Binance data shown on TradingView. The bounce followed a sharp sell-off after the Digital Asset Market CLARITY Act's cloture motion reportedly failed in a 49-50 Senate vote, short of the 60 votes needed to advance.
The setback hit a token that had already struggled to hold higher ground. Ethereum had recently traded as high as roughly $2,660 before sellers pushed it back down, and the pullback triggered about $250 million in Ethereum liquidations as leveraged long positions closed once the token lost $2,450.
Traders defend support near $2,380-$2,400 before the Fed
Separately, Ethereum probed resistance near $2,560 two times but failed to sustain a breakout, dropping back toward the $2,360 support, according to InvestingLive. That lines up with crypto.news's own read of the chart, where the daily lower Bollinger Band sits at $2,384.30 and buyers defended it during Tuesday's decline.
Attention now shifts to the Fed, where the market prices roughly an 80% probability of a 25-basis-point increase. InvestingLive reported the same consensus for a 25-bps move, with one or two policymakers expected to dissent in favor of no change, and said the Fed's updated Dot Plot will determine whether the rate hike path reads as hawkish or dovish for risk assets.
Analysts see further downside risk
Crypto analyst Ted Pillows said Ethereum is testing its 50-week exponential moving average, warning that a weekly close below it could produce an 8%-10% correction toward roughly $2,226 or $2,178. Crypto Patel outlined a more bearish path, pointing to downside targets of $2,143, $2,000 and $1,870 unless Ethereum reclaims $2,670, though the analyst's longer-term outlook remains bullish.
On the upside, crypto.news noted that ETH must clear the daily Bollinger midpoint at $2,464 and 4-hour Supertrend resistance at $2,526.61 before buyers regain firm control. U.S. spot Ethereum ETFs added to the pressure, recording between $141.5 million and $142.3 million in net outflows during the session, with BlackRock's ETHA responsible for about $98 million of that total. Until Ethereum clears that resistance band or the Fed signals a dovish shift, the token stays stuck defending support rather than pushing higher.
Sources: crypto.news, InvestingLive
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