Ethereum price dropped roughly 3% over the past week following the failure of the Clarity Act to clear the US Senate, dipping to $2,388 before rebounding to around $2,400. US-listed spot Ethereum funds recorded their largest outflow since January. Despite the selling pressure, fundamentals remain supportive: exchange reserves stand at 14.6 million ETH, the lowest since 2016, while 43 million ETH are staked, representing approximately 35% of total supply. ETH’s MVRV ratio has moved above 1 and the price trades above its realized price near $2,300, suggesting the cycle low may have been reached in June-July. With Washington sidelined, the Federal Reserve now takes center stage: the first rate hike of this cycle occurred on Wednesday and traders are watching for signals on the next steps in monetary policy.
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