We consider a zero-temperature one-dimensional system of bosons interacting via the soft-shoulder potential in the continuum, typical of dressed Rydberg gases. We employ quantum Monte Carlo simulations, which allow for the exact calculation of imaginary-time correlations, and a stochastic analytic continuation method, to extract the dynamical structure factor. At finite densities, in the weakly-interacting homogeneous regime, a rotonic spectrum marks the tendency to clustering. With strong interactions, we indeed observe cluster liquid phases emerging, characterized by the spectrum of a composite harmonic chain. Luttinger theory has to be adapted by changing the reference lattice density field. In both the liquid and cluster liquid phases, we find convincing evidence of a secondary mode, which becomes gapless only at the transition. In that region, we also measure the central charge and observe its increase towards c = 3/2, as recently evaluated in a related extended Bose-Hubbard model, and we note a fast reduction of the Luttinger parameter. For 2-particle clusters, we then interpret such observations in terms of the compresence of a Luttinger liquid and a critical transverse Ising model, related to the instability of the reference lattice density field towards coalescence of sites, typical of potentials which are flat at short distances. Even in the absence of a true lattice, we are able to evaluate the spatial correlation function of a suitable pseudo-spin operator, which manifests ferromagnetic order in the cluster liquid phase, exponential decay in the liquid phase, and algebraic order at criticality.Quantum phase transitions (QPT) [1] play an intriguing role in many-body systems, due to the possibility of unveiling new exotic phases. The progress in the manipulation of ultracold gases allows for the exploration of QPTs, by engineering well-controlled synthetic quantum many-body systems, confined for example by optical lattices [2,3] or in quasi-onedimensional geometries [4][5][6][7]. Recently, Rydberg atoms [8] have emerged as a new route to QPTs [9,10]. These are atoms in highly-excited electronic states, with a very large electronic cloud. In particular, theoretical [11][12][13][14] and experimental [15][16][17] efforts have focused on ensembles of dressed Rydberg atoms, which are superpositions of the ground state and the above mentioned excited states, coupled via a Rabi process. Their effective interaction can be a soft-shoulder potential, with a flat repulsion up to a radius R c related to the highly excited state, and a repulsive van-der-Waals tail at large distances [11,12,[18][19][20][21]. Quite interestingly, this repulsive interaction belongs to the class that has been recognized to induce cluster formation at high density in classical statistical mechanics [22,23], thanks to the relative freedom of particles at short distances. This has opened a recent flourishing of research on quantum cluster phases: in high dimensions, coexisting cluster crystal and superfluid order have been predicted, yiel...