Why did the price of ETC fall?

Ethereum Classic (ETC) dropped 1.56% over the last 24 hours to $15.44, underperforming the overall crypto market, which fell 0.85%. This decline is tied to technical weaknesses, lower liquidity, and a cautious mood across the crypto sector.

1. Market-wide pullback – Crypto Fear & Greed Index at 28 (Extreme Fear), with investors pulling money from ETFs.
2. Technical breakdown – ETC price is below important moving averages, with bearish signals from technical indicators.
3. Tether’s exit – USDT stablecoin is no longer supported on the ETC blockchain, reducing its use and liquidity.

Deep Dive

1. Overall Crypto Market Weakness (Negative Impact)

The total value of all cryptocurrencies fell by 0.85% in the past day. Bitcoin’s share of the market increased to 58.97% as investors moved toward what they see as safer assets. Bitcoin-focused ETFs experienced $328 million in outflows this week (Crypto.News), and the Fear & Greed Index dropped to 28, signaling “Extreme Fear.” ETC’s price movement (-1.56%) compared to Ethereum (-1.2%) shows that altcoins like ETC are feeling more pressure during this risk-off period.

2. Technical Weakness (Negative Impact)

ETC is trading below key moving averages, which often signals a bearish trend:

• 30-day Simple Moving Average (SMA): $18.58 (acting as resistance)
• 200-day Exponential Moving Average (EMA): $19.84 (indicates long-term weakness)

Technical indicators also point downwards: the MACD histogram is at -0.20, and the Relative Strength Index (RSI) is 37.96, both suggesting downward momentum. The price is struggling near the 50% Fibonacci retracement level at $15.71, with the next support level around $14.42 (61.8% Fibonacci retracement).

3. Lower Ecosystem Activity (Mixed Impact)

Tether stopped supporting USDT on the ETC blockchain as of August 30, 2025, which reduces liquidity and developer interest. However, the upcoming Olympia Upgrade, planned for late 2026, aims to improve the network with features like DAO governance and fee burns, which could boost activity in the future. For now, uncertainty remains.

Conclusion

ETC’s recent price drop is due to broader crypto market challenges, technical breakdowns, and reduced liquidity following Tether’s exit. While ETC’s Proof-of-Work model appeals to those who value decentralization, it faces challenges from Ethereum’s growing ecosystem and a lack of immediate positive catalysts.

Key point to watch: Will ETC hold the $14.42 support level, or will bearish momentum push it down toward yearly lows near $10.24?

What could affect the price of ETC?

Ethereum Classic (ETC) is navigating challenges between upcoming protocol upgrades and tough market conditions.

1. Olympia Upgrade (2026) – Introducing on-chain governance and fee burning could make ETC more valuable and useful.
2. Proof-of-Work Security Risks – ETC remains vulnerable to 51% attacks despite increased mining power after Ethereum’s Merge.
3. Altcoin Market Pressure – Bitcoin’s dominance at 59% limits investment flowing into smaller coins like ETC.

Deep Dive

1. Protocol-Level Funding Reform (Positive Outlook)

What’s Happening:
The Olympia Upgrade, planned for late 2026, will implement a system similar to Ethereum’s EIP-1559. This means 20% of transaction fees will be permanently destroyed (fee burns), reducing the total supply of ETC. The remaining 80% will go into a decentralized treasury controlled by ETC holders, funding community projects and development.

Why It Matters:
Burning fees lowers ETC’s inflation rate, which is currently about 3.7% per year. The treasury allows the community to support new initiatives, potentially increasing ETC’s value. When Ethereum introduced EIP-1559, its price increased over five times within a year. However, ETC’s smaller market size (around $2.37 billion compared to Ethereum’s $441 billion) means its price could be more volatile.

2. Proof-of-Work Security Tradeoffs (Risks to Consider)

What’s Happening:
ETC uses a Proof-of-Work (PoW) system, requiring about $144,000 daily to maintain its current mining power (150 TH/s) (The Defiant). Although mining power has increased by 525% since Ethereum switched to Proof-of-Stake, ETC is still much cheaper to attack than Bitcoin.

Why It Matters:
ETC has experienced three 51% attacks in 2020, where attackers gained control over the network, leading to potential exchange delistings and loss of investor confidence. On the bright side, growing interest from institutional miners, like BITMAIN’s $10 million grant program, could help spread out mining power and improve security.

3. Market Sentiment and Bitcoin’s Influence (Mixed Effects)

What’s Happening:
The Crypto Fear & Greed Index is currently at 28 out of 100, signaling “Extreme Fear.” Bitcoin’s market dominance has risen to 59%, which usually means less money flows into smaller coins like ETC. ETC’s price tends to move closely with Bitcoin, showing a 0.89 correlation over the past 30 days.

Why It Matters:
For ETC to gain momentum, either Bitcoin needs to rally above $120,000 (which historically boosts altcoins), or ETC must position itself as a strong alternative to Ethereum. The Federal Reserve’s expected interest rate cuts in 2025 could encourage more risk-taking in crypto markets, but regulatory concerns around Proof-of-Work coins remain a challenge.

Conclusion

ETC’s future price depends on successfully rolling out the Olympia upgrade’s deflationary features while avoiding security issues during uncertain market times. Keep an eye on the Q4 2025 testnet launch for the new governance system and Bitcoin’s market dominance trends. The big question: Can Ethereum Classic’s “Code is Law” philosophy attract developers and users despite Ethereum controlling 97% of the smart contract market?

What are people saying about ETC?

The Ethereum Classic (ETC) community is divided between strong belief in its core principles and frustration over recent price drops. Here’s what’s making headlines:

1. Olympia Upgrade excitement – New governance through a decentralized autonomous organization (DAO) brings hope for long-term growth.
2. Conflicting price forecasts – Some predict ETC will reach $55 by 2025, while technical analysis warns of further declines.
3. “Code is Law” supporters – Fans emphasize ETC’s commitment to unchangeable rules despite market ups and downs.
4. Price correction after rally – A 35% drop over the last quarter is testing the patience of investors.

Deep Dive

1. @EthClassicDAO: Olympia Upgrade Governance Overhaul Positive Outlook

“First-ever on-chain treasury + DAO native to a Proof-of-Work Ethereum network… mainnet activation target: End of 2026.”
– @EthClassicDAO · July 1, 2025, 10:51 PM UTC
View original post
What this means: This upgrade is good news for ETC because it introduces decentralized funding and decision-making, which could solve long-standing development challenges. However, since the full launch is planned for late 2026, immediate effects are limited.

2. @johnmorganFL: $28 Price Target After Recent Rally Mixed Signals

“Ethereum Classic Price Eyes $28 After 37% Weekly Rally” (July 19, 2025) vs. current 35% quarterly drop to $15.41.
– @johnmorganFL · July 19, 2025, 7:31 AM UTC
View original post
What this means: The outlook is uncertain. Some traders see risks of ETC falling below $20, while others highlight the recent rally as a sign of potential price swings.

3. @Crypt0_DeFi: “Code is Law” Philosophy Supportive

“ETC stands out for protecting freedom… offering a fully decentralized, censorship-resistant platform.”
– @Crypt0_DeFi · September 9, 2025, 7:00 AM UTC
View original post
What this means: This highlights ETC’s unique position as a Proof-of-Work (PoW) blockchain that values immutability and censorship resistance. However, it’s important to monitor user activity and decentralized applications (DApps) to gauge real-world adoption.

4. CoinMarketCap Post: Bearish Technical Outlook Negative

“ETC breaks support… descending triangle suggests drop toward $19.62.”
– August 1, 2025, 11:30 AM UTC
View original post
What this means: Technical indicators are showing weakness. ETC’s current price of $15.41 is already 20% below the $19.62 support level, signaling increased selling pressure.

Conclusion

The overall view on Ethereum Classic is mixed. While the upcoming Olympia Upgrade promises a more sustainable future through decentralized governance, the recent 35% price drop highlights the challenges ETC faces in proving its value as the “immutable Ethereum.” Keep an eye on the MVRV (Market Value to Realized Value) ratio—if it falls below 1, it might indicate that ETC is undervalued and could be a good time to buy.

What is the latest news about ETC?

Ethereum Classic is moving forward with important upgrades and expanding its presence, while dealing with changes in liquidity.

1. Olympia Upgrade Proposed (July 1, 2025) – Introducing on-chain community governance for Proof-of-Work Ethereum networks.
2. Tether Stops Supporting ETC (August 30, 2025) – USDT stablecoin removed from Ethereum Classic, raising concerns about liquidity.
3. Growth in Asia Speeds Up (September 15, 2025) – Efforts in Hong Kong promote ETC’s Proof-of-Work principles in line with local regulations.

Deep Dive

1. Olympia Upgrade Proposed (July 1, 2025)

Overview
Ethereum Classic’s developers have suggested the Olympia Upgrade, which includes four Ethereum Classic Improvement Proposals (ECIPs). This upgrade will introduce a fee-burning system similar to Ethereum’s EIP-1559, where 80% of transaction fees go into a decentralized treasury. It also brings on-chain governance through a Decentralized Autonomous Organization (DAO), allowing the community to make decisions about the network’s future. Testing is planned for late 2025, with full implementation expected by late 2026.

What this means
This upgrade is positive for Ethereum Classic because it creates a sustainable way to fund development and lets the community have a direct say in decisions. However, the long timeline until full rollout could slow momentum in a rapidly changing market. (EthClassicDAO)

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

Overview
Tether, the issuer of the popular USDT stablecoin, has stopped supporting Ethereum Classic, along with Algorand and Solana, to simplify its operations. Although ETC made up less than 1% of USDT’s $110 billion market, this change could make it harder for Ethereum Classic projects to access stablecoins and interact with decentralized finance (DeFi) platforms.

What this means
This is a short-term challenge for Ethereum Classic, as fewer stablecoin options may discourage developers. Still, Ethereum Classic’s focus on improving its own native assets through upgrades like Olympia could reduce dependence on external tokens. (Bitget)

3. Growth in Asia Speeds Up (September 15, 2025)

Overview
Ethereum Classic Grants DAO has teamed up with organizations in Hong Kong to promote ETC as a Proof-of-Work blockchain that fits well with the city’s new Web3 regulations. The campaign highlights ETC’s unchangeable ledger (“Code Is Law”) as a benefit for regulatory compliance.

What this means
This development is somewhat positive, as clearer regulations in Asia may attract more institutional interest. However, Ethereum Classic faces strong competition from Ethereum Layer 2 solutions and Bitcoin-focused financial products in the region. (Crypt0_DeFi)

Conclusion

Ethereum Classic is reinforcing its commitment to decentralization with the Olympia governance upgrade while managing liquidity challenges after Tether’s exit. Its push into Asia shows that Proof-of-Work blockchains still have appeal in regulated markets. The key question remains: can Ethereum Classic’s focus on ideological principles compete with Ethereum’s broader ecosystem and scalability?

What is expected in the development of ETC?

Ethereum Classic’s development plan centers on decentralized decision-making and steady improvements.

1. Olympia Upgrade (End of 2026) – Introduces on-chain DAO governance and a treasury system at the protocol level.
2. EVM Compatibility Maintenance (Ongoing) – Continues adopting proven Ethereum upgrades.
3. Network Security Enhancements (No Fixed Date) – Focuses on preventing issues from backward compatibility and improving network stability.

In-Depth Look

1. Olympia Upgrade (End of 2026)

Overview:
The Olympia Upgrade, proposed through ECIP-1111 to 1114, plans to implement a fee-burning system similar to Ethereum’s EIP-1559, but instead of burning fees, the base fees will be directed to a treasury. This treasury will fund development and ecosystem projects. It also introduces on-chain DAO governance, allowing $ETC holders to vote on funding, protocol changes, and priorities. Testing on test networks is expected by late 2025, with full deployment on the main network by late 2026.

What this means:

• Positive: Creates a sustainable way to fund developers and aligns the community through tokenholder voting.
• Risks: Decision-making through the DAO might slow progress if disagreements arise, and poor treasury management could hurt community trust.

2. EVM Compatibility Maintenance (Ongoing)

Overview:
Ethereum Classic maintains compatibility with the Ethereum Virtual Machine (EVM), which means it can adopt upgrades like Optimistic Rollups after they’ve been proven safe on Ethereum. This cautious “wait-and-adopt” approach reduces technical risks but means ETC may not be the first to implement new features.

What this means:

• Neutral: Keeps developer tools compatible and familiar but may miss out on early advantages.
• Watch for: Adoption of Layer 2 scaling solutions on ETC, such as zk-Rollups, as a sign of improved scalability.

3. Network Security Enhancements (No Fixed Date)

Overview:
There are proposals, like ECIP-1138, aimed at fixing backward compatibility issues to prevent smart contracts from breaking during network upgrades. Another idea is to set a fixed block size (8 million gas) to limit miner influence over network capacity.

What this means:

• Positive: Helps create a stable foundation for decentralized applications (dApps) over the long term.
• Challenges: Requires agreement from miners and node operators, which could slow down implementation.

Conclusion

Ethereum Classic’s roadmap is driven by its community, prioritizing security and decentralization over rapid innovation. The Olympia Upgrade could boost ecosystem growth by 2027, while ongoing EVM compatibility keeps ETC relevant. However, without a centralized development team, progress may be slower compared to other projects.

The key question remains: How will ETC balance its “Code is Law” philosophy with the need to adopt modern scalability solutions?

What updates are there in the ETC code base?

Ethereum Classic (ETC) is focusing on improving decentralized governance and funding through key upgrades.

1. Olympia Upgrade Drafts (July 2025) – Plans to introduce a treasury and decentralized autonomous organization (DAO) to manage funding and decisions on the blockchain.
2. EVM EOF Integration (2024) – Updates to improve smart contract performance and compatibility with Ethereum’s latest changes.
3. Mystique Upgrade (February 2022) – Adopted important Ethereum updates like fee burning and removing the difficulty bomb.

Deep Dive

1. Olympia Upgrade Drafts (July 2025)

Overview: The Olympia Upgrade includes four Ethereum Classic Improvement Proposals (ECIPs) designed to decentralize how the network is funded and governed. This will be done through an on-chain DAO and a treasury system.

Key features:

• ECIP-1111: Implements a fee system where a portion of transaction fees is burned, and 80% is redirected to a treasury fund.
• ECIP-1113: Creates a DAO where $ETC holders can vote on protocol decisions.
• The upgrade will first be tested on a test network before launching on the main Ethereum Classic network, expected by late 2026.

What this means: This upgrade is positive for Ethereum Classic because it builds a sustainable, community-driven funding model and reduces dependence on outside funding. However, since the full upgrade won’t launch until 2026, its immediate impact will be limited.
(Source)

2. EVM EOF Integration (2024)

Overview: Ethereum Classic has aligned with Ethereum’s Cancún upgrade by adopting the Ethereum Virtual Machine Object Format (EVM EOF). This improves how smart contracts run on the network.

Key improvements:

• Better code validation and gas measurement for contract initialization.
• Safer execution through static jumps and stack optimizations.

What this means: This update keeps Ethereum Classic compatible with Ethereum’s ecosystem, which is good for developers. However, it doesn’t change the user experience directly or add unique value to ETC itself.
(Source)

3. Mystique Upgrade (February 2022)

Overview: This upgrade brought in Ethereum’s London changes, including EIP-1559 fee burning and removing the difficulty bomb (which slows down block production).

What this means: The upgrade had a neutral long-term effect on ETC. While fee burning slightly reduces supply, ETC’s fixed supply cap of 210.7 million coins already limits inflation. The main benefit was ensuring compatibility with Ethereum.

Conclusion

Ethereum Classic focuses on upgrades that maintain compatibility with existing technology while enhancing decentralization and funding through the Olympia proposals. It avoids risky changes like switching to proof-of-stake (PoS). The Olympia upgrade could strengthen ETC’s community governance but will take time to implement. The challenge will be balancing ETC’s commitment to stability with the fast-changing demands of decentralized finance (DeFi).