Ethereum Tumbles Below $2,400 as Regulatory Setbacks Bite

Ethereum has slipped below the $2,400 level following the failed CLARITY Act vote in the US Senate. This regulatory setback triggered a wave of selling across crypto markets, with Ethereum's price dropping significantly.

The latest decline pushed ETH through a support level that had previously helped stabilize the market during previous pullbacks. This move follows the Senate's 49-50 vote against advancing the CLARITY Act, which also sent Bitcoin below $75,000.

Institutional demand for Ethereum has weakened, with Bitcoin and Ethereum ETFs collectively recording about $592 million in net outflows on September 15. Ethereum funds accounted for roughly $141 million of this total, a notable reversal from the recent strengthening of Ethereum ETF inflows.