Why did the price of ETC fall?

Ethereum Classic (ETC) dropped 3.68% in the last 24 hours, underperforming the overall crypto market, which fell by 0.52%. This decline is mainly due to Tether pulling USDT support from ETC and mixed technical signals.

1. Tether’s USDT delisting (Negative Impact) – This reduces liquidity and usefulness of ETC’s network.
2. Technical correction (Mixed Impact) – High RSI levels led traders to take profits.
3. Market caution (Negative Impact) – Interest in altcoins like ETC has cooled despite recent gains.

In-Depth Analysis

1. Tether’s USDT Withdrawal (Negative Impact)

What happened: On August 30, Tether announced it will stop supporting USDT on the Ethereum Classic network to simplify operations. USDT made up about 53% of stablecoin liquidity on ETC.

Why it matters:

• This reduces the ease of moving funds across blockchains and creates short-term liquidity challenges for ETC-based decentralized finance (DeFi) projects and trading.
• Similar past events, like Tether’s withdrawal from Bitcoin Gold in 2020, caused price drops of 15–20%.

What to watch: Whether ETC can attract other stablecoins and if tools are available to help users migrate their USDT holdings.

2. Technical Correction (Mixed Impact)

Current situation: ETC’s 7-day Relative Strength Index (RSI), a measure of price momentum, reached 69.85, close to the overbought level. The price also tested a key resistance point at $21.19.

What this means:

• Traders likely cashed in profits after ETC gained 4.07% over the past week.
• Positive signals like the MACD histogram (+0.167) show some ongoing momentum, but resistance at $22.70 remains strong.

Key level: If ETC closes below $21.19, it could drop further toward $20.06, a recent low point.

3. Market Sentiment Shift (Negative Impact)

Current mood: The Fear & Greed Index, which measures market sentiment, fell slightly to 52 (neutral) from 53. Interest in altcoins like ETC has softened after a strong 21.47% rally over 90 days.

What this means:

• Traders are moving away from mid-sized altcoins like ETC.
• Open interest in ETC derivatives dropped 3.33% over the week, indicating less speculative trading.

Conclusion

ETC’s recent decline is due to Tether’s withdrawal affecting liquidity and natural profit-taking after strong gains. While ETC’s upcoming Olympia upgrade in 2026 and its deflationary token model offer long-term potential, short-term risks are currently more significant.

What to watch: Will ETC hold the $21.19 support level, or will Tether’s exit lead to deeper losses?

What could affect the price of ETC?

Ethereum Classic is balancing promising upgrades with some risks to its network and liquidity.

1. Olympia Upgrade (2026) – New fee-burning and community governance could reduce coin supply
2. Tether Exodus – USDT stablecoin support ending on ETC may reduce liquidity
3. 51% Attack Concerns – Worries about mining centralization return after a recent Monero attack

Deep Dive

1. Protocol-Level Deflation Mechanics (Positive Outlook)

Overview: The upcoming Olympia Upgrade, planned for late 2026, will introduce a system similar to Ethereum’s EIP-1559, where a large portion (80%) of transaction fees will be burned and sent to a decentralized treasury. This builds on a 2025 update that started burning fees and helped ETC’s price rise 37% in July.

What this means: Burning coins reduces the number of ETC available for sale, which can create scarcity and potentially increase value. Since August 2025, ETC’s circulating supply has dropped by 0.8%. However, this effect depends on how much the network is used—ETC processes about 35,000 transactions daily, compared to Ethereum’s 1.2 million (CoinMetrics).

2. Stablecoin Liquidity Drain (Negative Outlook)

Overview: Tether plans to stop supporting USDT on the ETC network by early 2026, removing $47 million in stablecoin liquidity (Bitget). Since ETC’s decentralized finance (DeFi) ecosystem, with $21 million in total value locked, relies heavily on USDT trading pairs, this is significant.

What this means: Traders might move their activity to other blockchains that still support USDT, which could reduce transaction volume and the amount of fees burned on ETC. Since Tether’s announcement, ETC’s trading volume has dropped by 17%, indicating short-term challenges.

3. Proof-of-Work Security Perception (Mixed Outlook)

Overview: A 51% attack on Monero in August raised concerns about ETC’s mining security. Although ETC hasn’t experienced major attacks since 2020, its top three mining pools control 61% of the network’s computing power (2Miners).

What this means: Efforts like security audits and a bug bounty fund managed by the Olympia DAO aim to boost confidence. Still, proof-of-work blockchains like ETC face risks if Ethereum’s shift to proof-of-stake draws away developers and liquidity.

Conclusion

Ethereum Classic’s success in 2026 depends on rolling out upgrades while keeping the network secure. A 30% reduction in supply from fee burns could help balance out liquidity losses, but decentralizing mining power is crucial. The big question is whether the DAO’s incentives will attract enough developers to strengthen ETC’s ecosystem before Tether fully exits.

What are people saying about ETC?

Ethereum Classic’s community is standing firm on its core values, while traders are watching for price swings. Here’s what’s trending:

1. “Code Is Law” principle drives debates on decentralization
2. Olympia Upgrade brings hope for improved community governance
3. Technical indicators show short-term weakness despite long-term optimism

Deep Dive

1. @Crypt0_DeFi: Supporting ETC’s unchangeable nature — bullish

“ETC chose not to undo the DAO hack — that’s true decentralization. Code beats politics.”
– @Crypt0_DeFi (X · Sept 12, 2025, 07:00 UTC)
View original post
What this means: This highlights Ethereum Classic as a blockchain that sticks to its original rules (immutable Proof of Work), unlike Ethereum which moved to Proof of Stake. This is good news for those who value decentralization but raises questions about how flexible ETC can be in the future.

2. @EthClassicDAO: Progress on Olympia Upgrade — bullish

“ETC holders now control protocol funding through the first on-chain DAO for PoW Ethereum networks.”
– @EthClassicDAO (X · July 1, 2025, 22:51 UTC)
View original post
What this means: The Olympia Upgrade, expected by late 2026, will add features like EIP-1559 fee burning and decentralized treasury management. This could reduce the total supply of ETC and better align the interests of the community and stakeholders.

3. @johnmorganFL: Technical analysis signals caution — bearish

“ETC is breaking a descending triangle pattern — if it falls below $20.25, $19.62 is the next target.”
– @johnmorganFL (CoinMarketCap · Aug 1, 2025, 11:30 UTC)
View original post
What this means: ETC dropped 3.7% today to $21.15, showing weakening momentum. If it falls below $20.25, it could test a key support level from May 2025 at $19.62.

Conclusion

Opinions on Ethereum Classic are mixed. The community is optimistic about its strong principles and the DAO-driven roadmap, but short-term technical signals suggest some caution. Watch the price range between $19.60 and $21.50 for signs of volatility, along with updates on the Olympia Upgrade’s testnet phase. While some price forecasts predict ETC could reach $40 to $55 in 2025, current market sentiment depends heavily on Bitcoin’s dominance (57%) and potential regulatory challenges for Proof of Work networks.

What is the latest news about ETC?

Ethereum Classic (ETC) is adapting to changes in its ecosystem and rolling out upgrades, while community efforts work to increase its use. Here are the latest highlights:

1. Tether Ends USDT Support (August 30, 2025) – ETC loses a major stablecoin bridge, which could cause short-term liquidity challenges.
2. ETC Grants DAO Launches $10M Funding (September 4, 2025) – A new fund aims to support decentralized apps and infrastructure growth.
3. Olympia Upgrade Draft Released (July 1, 2025) – Plans for on-chain governance and fee burning are proposed for 2026.

Deep Dive

1. Tether Ends USDT Support (August 30, 2025)

What happened: Tether announced it will stop supporting USDT stablecoins on Ethereum Classic, along with Algorand, Solana, Tron, and Stellar by the end of 2025. This decision is part of Tether’s effort to streamline operations amid increasing regulatory pressure. Before this announcement, about 3% of USDT’s cross-chain transactions involved ETC.

What it means: This is a short-term setback for ETC because traders and decentralized apps (dApps) that use USDT might move to other blockchains like Ethereum or Binance Smart Chain (BSC). On the bright side, this could encourage the development of native stablecoins on ETC, reducing reliance on external tokens. (Bitget)

2. ETC Grants DAO Launches $10M Funding (September 4, 2025)

What happened: The ETC Grants DAO has set up a $10 million fund, split evenly between ETC and USDT, to support developers working on decentralized finance (DeFi), non-fungible tokens (NFTs), and infrastructure projects on Ethereum Classic. Major mining companies BITMAIN and ANTPOOL are backing this initiative, aiming to boost ETC’s value relative to Ethereum (ETH).

What it means: This is a positive long-term development. It addresses ETC’s past challenges with attracting developers. The mixed funding approach helps protect against price swings while showing strong confidence in ETC’s future growth. (Crypt0_DeFi)

3. Olympia Upgrade Draft Released (July 1, 2025)

What happened: Four Ethereum Classic Improvement Proposals (ECIPs) suggest burning 80% of base transaction fees into a decentralized treasury and introducing on-chain DAO governance by late 2026. Testing started in July 2025 on the Mordor test network.

What it means: This upgrade is somewhat positive. The fee-burning introduces deflationary pressure, which can increase token value over time. However, since the full upgrade is planned for 2026, the immediate impact is limited. Success depends on keeping governance decentralized, avoiding the centralization issues seen in other DAOs. (EthClassicDAO)

Conclusion

Ethereum Classic faces short-term challenges due to Tether’s withdrawal but is responding with community-driven funding and upcoming protocol improvements. The big question is whether ETC’s “Code Is Law” philosophy can attract enough developers and users to balance out liquidity losses. Keep an eye on developer activity in the last quarter of 2025 for signs of progress.

What is expected in the development of ETC?

Ethereum Classic’s development is driven by its community, focusing on three main projects:

1. Olympia Upgrade (End of 2026) – Introducing a treasury system and decentralized governance through a DAO
2. Backward Compatibility Fixes – Making sure older smart contracts keep working after updates
3. Mining Protocol Adjustments – Setting a fixed block size for more consistent network performance

In-Depth Look

1. Olympia Upgrade (End of 2026)

What it is: The Olympia Upgrade includes four Ethereum Classic Improvement Proposals (ECIPs) designed to decentralize how the network is funded and governed:

• ECIP-1111: Adopts a fee-burning system similar to Ethereum’s EIP-1559 but redirects 80% of the base fees to an on-chain treasury fund.
• ECIP-1113: Creates a Decentralized Autonomous Organization (DAO) that allows all $ETC holders to participate in decision-making about the protocol.
  Testing started on a test network in July 2025, with plans to launch on the main network by late 2026.

Why it matters:

• Positive: This upgrade aims to provide steady funding for projects within the Ethereum Classic ecosystem while reducing the total supply of ETC through fee burning.
• Potential challenge: The DAO’s decision-making process might slow down if it’s hard to reach agreement among participants.

2. Backward Compatibility Fixes

What it is: Developers are working to fix issues related to how Ethereum Classic’s virtual machine (EVM) and account systems handle different software versions (2024 roadmap blog). This ensures that older smart contracts continue to work properly after network upgrades, staying true to Ethereum Classic’s principle of “Code Is Law.”

Why it matters:

• Positive: Keeping older contracts functional reduces headaches for developers and encourages long-term projects to build on Ethereum Classic.
• Neutral: The technical work involved might slow down other improvements temporarily.

3. Mining Protocol Adjustments

What it is: There are proposals to fix the block size at 8 million gas units instead of letting miners adjust it. This aims to prevent manipulation and make transaction processing more predictable.

Why it matters:

• Positive: A consistent block size can improve the network’s reliability, which benefits decentralized apps running on Ethereum Classic.
• Negative: Miners might resist losing flexibility, which could cause short-term fluctuations in mining power.

Conclusion

Ethereum Classic’s roadmap focuses on strengthening decentralized governance through the Olympia Upgrade and maintaining technical stability by preserving backward compatibility. This approach reinforces its identity as a “minimal-change” Ethereum Virtual Machine (EVM) blockchain. While timelines may shift due to its community-led development, the emphasis on sustainable funding and contract stability could make Ethereum Classic an attractive, conservative alternative to Ethereum. Additionally, ETC’s continued use of Proof-of-Work mining may appeal to developers and users concerned about regulatory scrutiny of energy-heavy blockchains.

What updates are there in the ETC code base?

Ethereum Classic (ETC) is updating its technology to focus on decentralization and compatibility with Ethereum’s smart contract system.

1. Olympia Upgrade (July 1, 2025) – Introduces on-chain governance and a treasury system managed by the community.
2. EVM EOF Upgrade (First Half of 2024) – Improves smart contract efficiency and security.
3. Mystique Upgrade (February 12, 2022) – Brought Ethereum’s London upgrade features to ETC.

Deep Dive

1. Olympia Upgrade (July 1, 2025)

What it is: This upgrade adds a system where the community can govern the protocol directly on the blockchain. It also creates a treasury funded by a portion of transaction fees, which supports ongoing development.

The upgrade includes four key parts:

• ECIP-1111: Activates EIP-1559, which burns a base fee from transactions and redirects some funds to the treasury.
• ECIP-1112: Sets up a permanent treasury contract that transparently manages funds.
• ECIP-1113: Creates the Olympia DAO, a decentralized organization for governance decisions.
• ECIP-1114: Defines how anyone can propose funding projects without needing special permission.

Why it matters: This is a positive step for ETC because it decentralizes decision-making and funding, reducing dependence on outside grants. It aligns incentives for the long-term health of the network. Testing is ongoing, with the main network upgrade expected by late 2026.
(Source)

2. EVM EOF Upgrade (First Half of 2024)

What it is: This upgrade aligns ETC with Ethereum’s upcoming Cancún upgrade, improving how smart contracts run and making the system more secure.

Key improvements include:

• EIP-3860: Limits and tracks the size of contract initialization code to prevent misuse of resources.
• EIP-3540: Introduces a new format for smart contract code that improves validation.
• EIP-5450: Enhances checks on the contract’s execution stack to reduce errors during runtime.

Why it matters: This upgrade keeps ETC compatible with Ethereum’s ecosystem, which is important for developers. It also strengthens security, making ETC a reliable platform for decentralized applications.
(Source)

3. Mystique Upgrade (February 12, 2022)

What it is: This upgrade brought Ethereum’s London hard fork features to ETC, including EIP-1559, which changes how transaction fees work.

Why it matters: Although this upgrade happened earlier, it was important because it aligned ETC’s fee system with Ethereum’s, reducing inflation by burning part of the transaction fees. It shows ETC’s approach of adopting improvements carefully while keeping its Proof of Work consensus.

Conclusion

Ethereum Classic’s updates focus on giving the community more control, maintaining compatibility with Ethereum’s smart contract system, and introducing deflationary features through fee burning. The upcoming Olympia Upgrade’s DAO governance could drive organic growth, while the EVM EOF Upgrade ensures developers can easily build on ETC. As ETC moves toward the 2026 mainnet launch, it will be interesting to see how it balances innovation with its core principle of immutability.