Ethereum Price Sinks Below $2,400 Amid CLARITY Act Failure and Rate Hike Fears

Ethereum's price dropped below $2,400 following the failure of the CLARITY Act to advance in the Senate and growing fears of a Fed rate hike.

Market analysts point to a 92.3% likelihood of a 25-basis-point rate increase by the Federal Reserve at its next meeting, according to the CME FedWatch tool.

A Senate vote on Wednesday counted fewer than 60 'yea' votes needed to proceed with the legislation, adding to bearish pressure on markets.

However, on-chain data suggests that large investors are using this weakness to buy Ethereum. Whale wallets holding 10,000-100,000 ETH accumulated roughly 200,000 ETH in a month's time, while exchange reserves shrunk by nearly 159,000 ETH over the past five days.