Ethereum (ETH) Takes Hit as Clarity Act Fails, Fed Hikes Rates
Ethereum (ETH) took a hit after the Clarity Act failed to clear the Senate, falling 3.4% over the past 24 hours to trade near $2,388.68.
The bill's failure removed a potential catalyst for ETH in the short term, but its longer-term supply dynamics remain intact.
CryptoQuant recorded roughly 709,400 ETH moving into Binance on September 11, four days before the vote, which could signal more coins becoming available for selling.
However, exchange reserves have fallen steadily since 2022 and are at a record low of 14.6 million ETH, and staking continues to absorb supply with 43 million ETH staked, or close to 35% of supply.
The signals are not clean, though, as CryptoQuant's Coinbase Premium Index sits near -0.08, indicating softer US spot demand relative to offshore.
With attention shifting to monetary policy after the Federal Reserve raised rates by 25 basis points to a target range of 3.75% to 4.00%, Ethereum faces another near-term headwind as further rate hikes could keep pressure on demand for risk assets.