Ethereum Price Falls Back into Liquidity Trap After CLARITY Act Vote Failure

The Ethereum price has fallen back into a liquidity trap after the CLARITY Act vote failed in the U.S. Senate.

The token dropped to $2,410, leaving traders who bought at the September 11 spike to $2,660 underwater.

A zoomed-in chart of the four-hour timeframe shows a textbook stop hunt, where Ethereum swept liquidity above $2,600 but reversed within hours and broke market structure lower on September 15.

The break in market structure is bearish, but open interest across ETH futures has decreased by 3.1% in a day, and funding rates have reset close to flat, indicating a market getting cleaned out of over-leveraged longs rather than fresh shorts piling in.