Ethereum's native token, Ether (ETH), is showing signs of underperformance against Bitcoin (BTC), with a bearish double-top setup emerging just as the US Senate's failure to advance the CLARITY Act adds fresh uncertainty to the crypto market. Ether was trading near 0.03167 BTC on Sept. 16, after failing to sustain its latest advance against Bitcoin. The ETH/BTC daily chart shows two comparable peaks near 0.03344 BTC, one formed in August and another in September.
Together, they resemble a potential double top, a bearish reversal structure that typically develops when buyers repeatedly fail to push price through the same resistance area. Its neckline sits around 0.03078 BTC, meaning ETH/BTC would need a decisive daily close below that level to validate the breakdown. If that happens, subtracting the pattern's maximum height from the neckline produces a downside target near 0.0283 BTC.
That would represent a decline of roughly 10% from current levels, signaling further Ethereum underperformance relative to Bitcoin. ETH/BTC's daily relative strength index has fallen toward 53 after previously moving above 70, suggesting that the bullish momentum behind its August-September recovery is weakening. Ether nevertheless remains above its 20-day EMA near 0.03162 BTC.
A rebound from the moving average followed by a break above 0.03344 BTC would invalidate the double-top scenario. The bearish technical setup comes after the US Senate failed on Sept. 15 to advance the Digital Asset Market Clarity Act, legislation intended to establish a broader federal regulatory framework for cryptocurrencies. The procedural vote received a 50-49 majority but failed to reach the 60 votes required to advance the legislation.
A procedural vote switch by Senator Thom Tillis nevertheless leaves open the possibility that the measure could be reconsidered. Crypto markets weakened following the vote. Bitcoin fell about 4% to around $75,900, while shares of crypto companies including Coinbase and Circle also declined sharply.
The CLARITY Act setback adds to the bearish ETH/BTC setup. Regulatory uncertainty can push traders toward Bitcoin over Ethereum during risk-off periods. That puts the 0.03078 BTC neckline under pressure.
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