Why did the price of ETC go up?

Ethereum Classic (ETC) increased by 0.8% over the past 24 hours, reaching $18.62. This performance was slower compared to the overall crypto market, which gained 1.8%. The main factors behind ETC’s movement include positive technical signals and optimism about upcoming protocol upgrades.

1. Fed Rate Cut Boost – Risk assets gained from a more cautious Federal Reserve
2. Olympia Upgrade Progress – Plans for improved governance and fee structure
3. Technical Rebound – Price approaching key support level

Deep Dive

1. Macro Tailwinds (Mixed Impact)

Overview: On September 17, 2025, the Federal Reserve cut interest rates by 0.25% (Decrypt), which improved investor confidence. This helped the total cryptocurrency market value rise by 1.8% in one day. Additionally, HTX is running a promotion offering zero-interest borrowing of ETC until October 8, which has increased demand slightly.

What this means: While ETC saw some benefit from these broader market improvements, its 0.8% gain was less than Ethereum’s (ETH) 2.1% increase. This suggests ETC is moving with less momentum compared to other major cryptocurrencies. Also, ETC’s price movement remains closely linked to Bitcoin’s, with a 30-day correlation of 0.89.

2. Olympia Upgrade Momentum (Bullish Impact)

Overview: The upcoming Olympia Upgrade (ECIP-1111) plans to introduce changes similar to Ethereum’s EIP-1559, including burning a portion of transaction fees and adding on-chain governance through a decentralized autonomous organization (DAO). Testing on the network started in July 2025, with full implementation expected by late 2026.

What this means: This upgrade aims to solve some of ETC’s funding challenges by directing 20% of transaction fees to a community treasury. However, since the full upgrade is still over a year away, the current price increase seems to be driven by anticipation rather than immediate effects.

3. Technical Rebound (Neutral Impact)

Overview: ETC’s price recently bounced off a key support level at $17.64, known as the Fibonacci support. The 200-day simple moving average (SMA) at $18.71 is currently acting as resistance. The Relative Strength Index (RSI) over 14 days is at 39.15, indicating there is room for the price to recover but it hasn’t yet reached a strong bullish level (above 50).

What this means: Traders are cautious. Trading volume increased by only 7.5% in the last 24 hours, which is modest compared to the price gain. If ETC can break and hold above the 200-day SMA, the next target could be around $19.50, which corresponds to another important Fibonacci level.

Conclusion

Ethereum Classic’s recent modest price rebound reflects a mix of improved market conditions and excitement about its upcoming governance changes. However, the relatively low trading volume and slower momentum compared to other cryptocurrencies suggest some investors remain cautious about short-term gains. Key watch: Will ETC stay above its 30-day volume-weighted average price (VWAP) of $18.45 over the weekend?

What could affect the price of ETC?

Ethereum Classic is balancing between upcoming protocol improvements and challenges in the market.

1. Olympia Upgrade (2026) – New on-chain governance and fee-burning features could reduce supply and support value.
2. Regulatory Environment – Hong Kong’s supportive Web3 policies contrast with global concerns over Proof-of-Work (PoW) energy use.
3. Market Role – As the PoW alternative to Ethereum (ETH), ETC appeals to users valuing decentralization but faces tough competition.

In-Depth Analysis

1. Protocol Funding Changes (Potential Positive Impact)

What’s Happening:
The Olympia Upgrade, planned for testing in late 2025 and full launch in 2026, will introduce a system where 80% of transaction fees are burned (removed from circulation) and funding decisions are made by a decentralized autonomous organization (DAO). This aims to reduce the total supply of ETC over time while supporting ongoing development without relying on centralized control.

Why It Matters:
Similar fee-burning mechanisms on Ethereum have helped stabilize prices during busy network periods. Currently, ETC generates about $94,000 daily in fees on average, which could translate to roughly $2.8 million worth of ETC removed from circulation each month once fully implemented. The actual effect depends on whether network usage increases enough to make these burns significant.

2. Regulatory Landscape in Asia (Mixed Effects)

What’s Happening:
Hong Kong has introduced a new Web3 regulatory framework (Crypt0_DeFi) that favors ETC’s Proof-of-Work model. Meanwhile, the U.S. is expanding institutional crypto access through the GENIUS Act, but the SEC continues to scrutinize PoW-based cryptocurrencies.

Why It Matters:
Asia makes up about 38% of ETC’s trading volume (according to CoinMarketCap). Clearer regulations in the region could attract investors who appreciate PoW’s transparency and security. However, concerns about energy consumption might limit interest from environmentally conscious investors.

3. Proof-of-Work Mining Trends (Neutral to Negative Outlook)

What’s Happening:
ETC’s mining power (hash rate) has dropped 14% year-over-year to 158 terahashes per second (Bitcoinist), raising questions about network security despite ETC’s commitment to PoW principles.

Why It Matters:
While ETC appeals to those who believe “Code is Law,” the broader market favors Ethereum’s shift to Proof-of-Stake (PoS), reflected in ETH’s market cap being 46 times larger than ETC’s. A continued decline in miners could increase the risk of a 51% attack, which might lead exchanges to delist ETC, as nearly happened with OKEx in 2020.

Conclusion

ETC’s future price depends on successfully implementing the Olympia Upgrade to reduce supply while managing regulatory and competitive pressures related to PoW. The current support range of $18–$21 could hold if upgrades proceed as planned, but falling below $17.64 (the low from July 2025) might indicate a downward trend.

Key Question: Will ETC’s DAO governance attract enough developer interest by early 2026 to grow its utility, or will it remain mainly a “philosophy coin” with limited practical use?

What are people saying about ETC?

The Ethereum Classic (ETC) community is divided between strong beliefs in its principles and uncertainty about its future. Here’s what’s currently trending:

1. “Code Is Law” supporters highlight ETC’s focus on decentralization
2. Traders are debating a drop below $19.62 versus long-term goals around $55
3. Regulatory changes in Asia are drawing attention to ETC’s Proof-of-Work (PoW) strength

In-Depth Look

1. @Crypt0_DeFi: ETC’s growth in Hong Kong seen as positive

“ETC Grants DAO plans to make 10 ETC equal to 1 ETH by funding PoW projects in Asia... BITMAIN’s $10 million investment shows strong institutional confidence in unchangeable smart contracts.”
– @Crypt0_DeFi (12.3K followers · 48K impressions · 2025-09-15 06:35 UTC)
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What this means: This is good news for ETC. Hong Kong’s supportive approach to Web3 technology could speed up the use of ETC’s censorship-resistant blockchain. However, Ethereum (ETH) still dominates the market, which remains a challenge.

2. @Beetle_ETC: ETC’s promise of financial freedom has mixed reactions

“ETC offers financial independence through unchangeable records, a fixed supply, and fair PoW mining – important for places facing inflation or limited banking access.”
– @Beetle_ETC (8.1K followers · 22K impressions · 2025-09-12 18:42 UTC)
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What this means: Neutral – ETC’s core values appeal to those who prioritize decentralization, but its real-world use is still behind Ethereum’s thriving decentralized finance (DeFi) and non-fungible token (NFT) markets.

3. CoinMarketCap Community: Technical analysis points to short-term weakness

“ETC fell below $20.25 support and is targeting $19.62. A descending triangle pattern suggests a possible 7% drop unless buyers push it back above $20.50.”
– CMC Community Post (3.2K votes · 2025-08-01 11:30 UTC)
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What this means: Bearish in the short term – the price decline matches ETC’s 11% loss over the past month. However, the Relative Strength Index (RSI) at 37 indicates it might be oversold and due for a bounce.

Conclusion

Opinions on Ethereum Classic are mixed. Some see it as the “unaltered original” Ethereum, valuing its commitment to decentralization. Others doubt its ability to compete with newer, more advanced blockchains. Upcoming upgrades like the 2026 Olympia update (which will introduce fee burning and DAO governance) could reduce supply and strengthen the network. Watch the $19.50–$20.50 price range closely—breaking out of this zone could set the tone for the last quarter of the year. For dedicated supporters, price dips are seen as a “decentralization discount.” For traders, ETC offers a chance to capitalize on market volatility alongside Bitcoin.

What is the latest news about ETC?

Ethereum Classic (ETC) is adapting to changing regulations and growing its network, but it faces some challenges with liquidity. Here’s the latest:

1. ETC Eyes Growth in Hong Kong (September 15, 2025) – Taking advantage of new Web3 rules to promote its Proof-of-Work approach.
2. HTX Launches Zero-Interest ETC Loans (September 24, 2025) – A move to encourage more trading after the Federal Reserve cut interest rates.
3. Tether Stops Supporting ETC (August 30, 2025) – Removing USDT on ETC could create short-term liquidity issues.

In-Depth Look

1. ETC Eyes Growth in Hong Kong (September 15, 2025)

What’s Happening:
Hong Kong has introduced new Web3 regulations that cover stablecoins, staking, and tokenization, making it a growing center for blockchain technology. Ethereum Classic is expanding there by promoting its Proof-of-Work system, which sticks to its principle that “Code Is Law.” The ETC Grants DAO, supported by BITMAIN and ANTPOOL with a $10 million fund, plans to back projects that improve ETC’s security and decentralization.

Why It Matters:
This regulatory clarity in Asia could attract big investors to ETC. However, ETC still faces competition from newer blockchain platforms and Ethereum, which leads in smart contract use. (Crypt0_DeFi)

2. HTX Launches Zero-Interest ETC Loans (September 24, 2025)

What’s Happening:
After the Federal Reserve lowered interest rates by 0.25%, HTX started offering zero-interest loans on ETC and 17 other cryptocurrencies until October 8. This lets traders borrow ETC without paying interest, encouraging more trading activity. Crypto derivatives trading volume also rose by 7% during this time.

Why It Matters:
This could boost short-term trading liquidity for ETC, although its price has stayed mostly steady (down 0.13% hourly, up 0.79% daily). The real effect depends on whether this leads to ongoing demand. (Decrypt)

3. Tether Stops Supporting ETC (August 30, 2025)

What’s Happening:
Tether has stopped issuing USDT stablecoins on the Ethereum Classic network to simplify its operations. ETC was one of five blockchains affected, including Algorand and Solana. This raises concerns about less liquidity for decentralized finance (DeFi) and cross-chain transactions on ETC.

Why It Matters:
This is a negative development for ETC’s liquidity, especially on decentralized exchanges. Developers might move their projects to other blockchains like Ethereum or Binance Smart Chain. Still, the ETC community remains confident in the network’s strength. (Bitget)

Conclusion

Ethereum Classic is working to grow in regulated markets like Hong Kong and benefit from incentives like HTX’s zero-interest loans. However, losing Tether’s support highlights how much ETC depends on outside services. The big question is whether ETC’s commitment to decentralization and Proof-of-Work will attract enough developers and users to overcome these challenges.

What is expected in the development of ETC?

Ethereum Classic (ETC) is moving forward with key updates:

1. Olympia Upgrade (End of 2026) – Introducing a decentralized treasury, fee burning, and DAO governance.
2. EVM Versioning (Long-term) – Ensuring smart contracts remain compatible with future upgrades.
3. Layer 2 Integration (Ongoing) – Adding scaling solutions like Optimistic Rollups to improve performance.

In-Depth Look

1. Olympia Upgrade (End of 2026)

What it is:
The Olympia Upgrade will bring new funding and governance features through four Ethereum Classic Improvement Proposals (ECIPs):

• ECIP-1111: Similar to Ethereum’s EIP-1559, it burns fees but redirects 80% of the base fees into a treasury.
• ECIP-1112: Creates a permanent, transparent treasury contract to manage funds.
• ECIP-1113: Sets up on-chain governance where ETC holders can vote on decisions.
• ECIP-1114: Defines how anyone can submit funding proposals without needing special permission.

Testing will start on the Mordor test network, with the main network upgrade expected by the end of 2026.

Why it matters:
This upgrade is positive for ETC because it addresses long-standing funding problems, gives token holders a say in governance, and introduces deflationary mechanics by burning fees. However, there are risks like delays in reaching consensus or low voter turnout.

2. EVM Versioning (Long-term)

What it is:
Ethereum Classic plans to implement versioning for its Ethereum Virtual Machine (EVM), the system that runs smart contracts. This means older contracts will keep working even as new features are added. Contracts will run on the EVM version that matches their deployment block, preventing breakage during upgrades (Future Classic - Ethereum Classic).

Why it matters:
This is a neutral to positive step. It keeps ETC’s principle of “Code is Law” intact by ensuring contracts don’t break, while allowing gradual improvements. On the downside, the added technical complexity might slow down developer adoption if tools don’t keep up.

3. Layer 2 Integration (Ongoing)

What it is:
ETC is working on integrating Layer 2 solutions like Optimistic Rollups, which help scale the network by processing transactions off the main chain. Thanks to ETC’s compatibility with Ethereum’s EVM, it can adopt proven technologies from Ethereum and other blockchains (Donald McIntyre, 2024).

Why it matters:
This is positive for ETC’s usability. Layer 2 solutions can attract decentralized finance (DeFi) and non-fungible token (NFT) projects by offering lower fees and the security of proof-of-work (PoW). However, ETC faces competition from Ethereum’s already established Layer 2 ecosystem, which could make adoption challenging.

Summary

Ethereum Classic’s roadmap focuses on decentralized governance (Olympia), maintaining compatibility (EVM versioning), and improving scalability (Layer 2). The Olympia Upgrade, expected in 2026, is a major milestone that could transform ETC’s funding and governance model. Currently trading at $18.67 (down 10% over the past month), ETC’s commitment to PoW security and community-driven funding will be tested in a market dominated by staking-based blockchains.

What updates are there in the ETC code base?

Ethereum Classic (ETC) is updating its software to focus on decentralized decision-making and long-term sustainability.

1. Olympia Upgrade Drafted (July 1, 2025) – Introduces a new fee system (EIP-1559) and on-chain governance through a DAO.
2. Testnet Trials (After July 2025) – Features tested on the Mordor testnet to ensure everything works smoothly.
3. Mainnet Launch Planned (End of 2026) – Full activation of funding and governance features on the main network.

Deep Dive

1. Olympia Upgrade Drafted (July 1, 2025)

What’s happening: The Olympia Upgrade includes four key improvements aimed at making Ethereum Classic more decentralized and financially sustainable.

• ECIP-1111 applies a new fee system called EIP-1559, but instead of burning most fees, 80% will go into a treasury fund.
• ECIP-1113 creates a Decentralized Autonomous Organization (DAO), allowing ETC holders to vote on proposals that affect the network.

This upgrade addresses past problems like centralized funding and keeps Ethereum Classic’s Proof-of-Work system intact.

Why it matters: This is good news for ETC because it sets up a steady funding source and aligns the interests of developers and coin holders. Decentralized governance could encourage more development, but success depends on active community involvement.
(Source)

2. Testnet Trials (After July 2025)

What’s happening: The Mordor testnet will be used to test Olympia’s new features, including the treasury and proposal voting system.

Developers will check the Ethereum Classic Funding Proposal (ECFP) system, which lets anyone request funding. The main focus is to find and fix any security issues in the DAO’s voting process.

Why it matters: If testing goes well, it will boost confidence that ETC can fund itself without outside help. But if problems arise, the mainnet launch could be delayed.

3. Mainnet Launch Planned (End of 2026)

What’s happening: The upgrade will only go live once the community agrees and node operators update their software.

There will be time to gather feedback, especially on details like how much of the fees are burned and voting rules. The upgrade is optional, so nodes that don’t want to upgrade can keep running the old version.

Why it matters: This careful rollout lowers the risk of problems but could lead to a split if not everyone agrees. In the long run, it makes ETC the first Proof-of-Work Ethereum chain with built-in on-chain governance.

Conclusion

The Olympia Upgrade is the biggest change to Ethereum Classic since its 2016 split from Ethereum. It focuses on creating a self-sustaining governance system while sticking to ETC’s core principle that “Code Is Law.” Whether decentralized funding will boost developer activity without affecting ETC’s stability remains to be seen. Watching testnet results and community involvement through 2026 will be key.