Reigning champion Luke Humphries was knocked out of the World Championship by an inspired Peter Wright in a major upset at Alexandra Palace.
Clayton’s mid-match form then deserted him and Price, the 10th seed, got the job done despite only producing glimpses of his best, which saw him end with an average of 92.28 and a checkout percentage of 36.1.
Wright, 54, who lifted the crown in 2020 and 2022, fought back the tears after a convincing win in which he averaged nearly 101 and hit 70 per cent of his doubles.
Former world champion Gerwyn Price earlier became the first man to book his place in the quarter-finals by defeating Jonny Clayton 4-2.
Price, who won the title in 2021, was rarely at his best against his fellow Welshman, racing into a 2-0 lead with an average of 107 before Clayton hit back to level it up at 2-2.