Ethereum has fallen to $2,405 following the Senate's failure to advance the CLARITY Act on September 15, 2026, with the cloture vote falling 49–50, ten votes short of the 60 needed to move the bill forward. All Democrats voted against it, including the seven who had negotiated the text for months, while Republicans Moran, Paul, Hawley and Tillis also voted no. The immediate support zone is $2,350 to $2,362, followed by $2,250, where put options are concentrated, showing where traders are protecting against a deeper decline. Above the market, $2,484, $2,534 and $2,600 mark the main resistance levels from the August range.
Spot Ethereum ETFs have brought in about $307.4 million in net inflows through mid-September, significantly outpacing Bitcoin's roughly $17 million over the same period, according to SoSoValue. This represents a notable shift since both products launched, as Bitcoin ETFs have generally attracted more money historically. BlackRock's ETHA recorded inflows for 20 straight trading days through mid-month, demonstrating sustained institutional demand despite the legislative setback. The ETF strength comes as the Fed raised rates by 25 basis points to 3.75%-4.00% on September 16, with 16 of 18 committee members projecting at least one more hike before year-end. If investors continue buying Ethereum ETFs after today's rate hike, those purchases could provide steady demand and help offset selling pressure from higher interest rates.
Ethereum's Glamsterdam upgrade continued confirming blocks after adopting new block-building rules earlier this week, clearing a key test before a proposed October 6 rollout on the Sepolia public test network. According to reports from CoinDesk, Nethermind's execution software completed all 2,302 performance tests while processing 570.7 billion gas in three minutes and 15 seconds, achieving an average of about 2.9 billion gas per second. The benchmark measured Nethermind's execution software rather than the speed of the full network, demonstrating the effectiveness of block-level access lists designed to enable parallel processing and support greater network capacity. A successful Sepolia test would keep the upgrade's planned timeline on track and give investors more confidence in Ethereum's development plans heading into Q4.
Large institutional holders continue building substantial Ethereum reserves despite market volatility. BitMine Immersion Technologies holds about 5.96 million ETH, equal to roughly 4.9% of Ethereum's total supply, and has continued buying since June 2025, purchasing for about 67 consecutive weeks since June 30, 2025. SharpLink Gaming holds another 867,798 ETH and stakes nearly all of its holdings to earn additional ETH through staking, with BitMine staking about 85% of its Ethereum holdings. These companies are building large Ethereum reserves rather than trying to profit from short-term price moves, taking ETH out of the market and creating another source of demand if other investors start selling after the Fed's decision. The reduced pool of readily available ETH could help absorb selling pressure if investors begin buying again.
Ethereum trades at $2,405 with 15 days left before the fourth quarter begins on October 1, down 1.4% from Tuesday's open as traders position for the Fed's rate decision. The token is down roughly 23% since January 1 and more than 50% below the $4,955 all-time high it set in August 2025. Ethereum has already seen major swings this year, falling from a $3,122 opening price to $1,755 in February before recovering into the $2,400 range. Analysts project Ethereum could rally 14% from $2,405 to $2,750 by October 1 if ETF flows continue outrunning Bitcoin's, while the base case suggests holding $2,300 to $2,600 through the end of September, trading near $2,500 by Q4. The September 16 daily close above or below $2,405 remains the decisive signal for the token's near-term direction.
