What could affect the price of ETC?

Ethereum Classic is at a crossroads, balancing upcoming upgrades with ongoing challenges.

1. Olympia Upgrade (2026) – New on-chain rules and fee burning could reduce supply.
2. Mining Challenges – Dominance of specialized mining hardware and rising energy costs threaten network security.
3. Regulatory Environment – Asia’s growing support for Web3 contrasts with global skepticism toward Proof-of-Work (PoW) blockchains.

Deep Dive

1. Protocol-Level Evolution (Positive Outlook)

Overview: The Olympia Upgrade, planned for late 2026, will introduce a system similar to Ethereum’s EIP-1559. This means 80% of the base transaction fees will be permanently destroyed (burned), reducing the total supply of Ethereum Classic (ETC). Additionally, a decentralized treasury funded by redirected fees will support development. This approach helped Ethereum’s price rise significantly between 2021 and 2025. Testing on the network is expected to start in the third quarter of 2026.

What this means: By slowing the increase in ETC supply (currently about 3.7% inflation per year) and creating a fund to support developers, Ethereum Classic could attract more projects and users. This is important since ETC’s total value locked (TVL) is only about $208,000, compared to Ethereum’s $70 billion. For context, after Ethereum introduced fee burning, its price increased by 82% within six months, even during a market downturn.

2. Proof-of-Work Challenges (Negative Outlook)

Overview: Ethereum Classic remains one of the top 10 mineable cryptocurrencies, with miners earning 2.5 ETC per block. However, mining is dominated by ASIC machines like the Bitmain Antminer E9, which centralizes control. Energy costs make up 60-70% of mining expenses, and ETC’s price has dropped 25% year-to-date, squeezing miners’ profits.

What this means: Since January 2026, the network’s computing power (hashrate) has fallen by 18%, increasing the risk of a 51% attack—a situation where bad actors could take control of the network. ETC experienced three such attacks in 2020. Even a small increase in electricity costs (just $0.01 per kilowatt-hour) can reduce miner profits by about 12%. Many U.S. miners operate near $0.15 per kWh, a critical threshold for profitability.

3. Regulatory Environment (Mixed Outlook)

Overview: Hong Kong’s new stablecoin regulations and Ethereum Classic Grants DAO’s $10 million fund aim to boost adoption among Asian institutions. However, the European Union is considering a ban on Proof-of-Work blockchains, potentially taking effect in 2027.

What this means: Ethereum Classic’s principle of “Code is Law” appeals to countries like Argentina, where about 23% of the population uses cryptocurrency. But in regions focused on environmental, social, and governance (ESG) standards, ETC faces challenges. The Grayscale ETCG trust currently trades at a 32% discount to its net asset value, indicating weak confidence from institutional investors despite ongoing development efforts.

Conclusion

Ethereum Classic’s success in 2026 depends on effectively implementing the Olympia Upgrade to limit supply growth while preventing mining centralization. Keep an eye on the Mordor testnet’s fee burn results and hashrate trends in the third quarter. If the hashrate falls below 10 terahashes per second (TH/s) for an extended period, it could signal serious risks to the network’s security. The question remains: will Ethereum Classic’s strict immutability make it a “digital gold” for the future, or will it become outdated in a world increasingly focused on ESG concerns?

What are people saying about ETC?

Ethereum Classic (ETC) is facing some technical challenges but continues to hold its identity as a Proof-of-Work (PoW) blockchain. Here’s the latest:

1. Technical indicators suggest downward pressure with strong resistance levels blocking gains
2. Long-term value is uncertain due to competition and ecosystem hurdles
3. Recent price movements are testing important support levels

Deep Dive

1. @Call4Tokentalk: Resistance levels limit recovery — bearish

"$ETC is firmly trading within a long-term downtrend... Unless it climbs back above $13.00, the easiest path is downward. Key resistance is between $12.05 and $12.20 (immediate sell zone)"
– @Call4Tokentalk (2.1K followers · 6.6K impressions · 2025-12-25 19:20 UTC)
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What this means: This outlook is negative for ETC because repeated rejection at these resistance levels shows ongoing selling pressure, making it hard for the price to rise until these barriers are overcome.

2. @Nicat_eth: PoW value layer faces challenges — mixed

"ETC aims to be a long-term settlement layer... but low developer activity limits new liquidity. Strong competition from faster Layer 1 blockchains reduces its market relevance."
– @Nicat_eth (7.5K followers · 9.3K impressions · 2025-12-01 20:53 UTC)
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What this means: This is a mixed signal for ETC. Its PoW design offers security and resistance to censorship, but fewer developers working on it means it struggles to keep up with faster, more popular smart contract platforms.

3. @Finora_EN: Price consolidation tests support — bearish

"Price is consolidating just above $11.87 support... bearish outlook remains unless it breaks above $12.14 with strength. Risk of further decline if $11.87 support fails."
– @Finora_EN (6.2K followers · 8.4K impressions · 2025-12-18 10:33 UTC)
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What this means: This is bearish because if ETC can’t push past the immediate resistance at $12.14, it’s more likely to drop further. The $11.87 level is critical—if it breaks, the price could fall more sharply.

Conclusion

The short-term outlook for Ethereum Classic is bearish, but the long-term view is mixed. While ETC benefits from the security of its Proof-of-Work system, it faces challenges growing its ecosystem and competing with faster blockchains. Technically, selling pressure remains strong at resistance levels, but ETC’s role as a stable settlement layer still holds value. Keep an eye on whether ETC can maintain support at $11.87 and turn resistance near $12.50 into a new support level, which could signal a potential trend reversal.

What is the latest news about ETC?

I wasn’t able to find enough information to answer this question right now. The CoinMarketCap team is continuously updating my crypto knowledge, so if any important details become available, I should have them soon. Meanwhile, please feel free to choose another question or cryptocurrency for analysis.

What is expected in the development of ETC?

Ethereum Classic’s development is guided by its decentralized community. Here are the key updates to watch for:

1. Olympia Upgrade (End of 2026) – Introduces on-chain governance and a new funding system.
2. Layer 2 Scalability Integration – Plans to adopt Optimistic Rollups and other tools to improve transaction speed and lower costs.
3. Hashrate Growth – Aims to attract miners leaving Ethereum to strengthen network security.

In-Depth Look

1. Olympia Upgrade (End of 2026)

What it is:
The Olympia Upgrade includes four key proposals called ECIPs:

• ECIP-1111: Adopts a fee system where 80% of transaction fees are burned and sent to a decentralized treasury.
• ECIP-1113: Sets up on-chain governance, allowing ETC holders to vote on how funds are used.
• ECIP-1114: Creates an open, permissionless process for funding projects, reducing barriers to resource access.

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

Why it matters:
This upgrade strengthens ETC’s decentralized control and ensures sustainable funding. However, delays or technical challenges could slow its rollout.

2. Layer 2 Scalability Integration

What it is:
Ethereum Classic plans to add Layer 2 solutions like Optimistic Rollups by 2027. These technologies increase transaction capacity and reduce fees without changing the core blockchain.

Why it matters:
This could make ETC more attractive to developers building decentralized apps by lowering costs and improving speed. The risk is that ETC might move slower than competitors like Solana in adopting these upgrades.

3. Hashrate Growth After Ethereum’s Shift

What it is:
Since Ethereum switched to Proof-of-Stake, many GPU miners are looking for new networks. ETC aims to welcome these miners to increase its hashrate from about 150 TH/s in early 2026 to 300 TH/s by 2027.

Why it matters:
A higher hashrate means stronger network security and greater confidence from investors. Still, there’s a risk if mining power becomes too concentrated in a few large pools.

Conclusion

Ethereum Classic’s future depends on its community-driven governance, adopting proven Ethereum technologies, and maintaining its Proof-of-Work identity. The Olympia Upgrade and Layer 2 plans could renew developer interest, but challenges remain in execution. With ETC currently trading far below its all-time high, the big question is whether its focus on decentralization and security will help it stay relevant in a world where Proof-of-Stake dominates.

What updates are there in the ETC code base?

Ethereum Classic (ETC) is preparing for its Olympia Upgrade, which will introduce decentralized funding and governance features.

1. Olympia Upgrade Draft (July 2025) – Adds a protocol-level treasury, DAO governance, and fee-burning mechanics based on EIP-1559.
2. Mystique Upgrade (February 2022) – Brings backward-compatible improvements to the Ethereum Virtual Machine (EVM) for better gas efficiency.

Deep Dive

1. Olympia Upgrade Draft (July 2025)

Overview: This upgrade plans to create a decentralized treasury system and on-chain governance. It will redirect 80% of transaction fees to a community-controlled Decentralized Autonomous Organization (DAO).

The upgrade is defined by four Ethereum Classic Improvement Proposals (ECIPs):

• ECIP-1111: Implements EIP-1559, which burns part of the transaction fees and sends the rest to the treasury.
• ECIP-1112: Sets up an unchangeable treasury contract to manage funds transparently.
• ECIP-1113: Creates a DAO that lets $ETC holders vote on protocol changes.
• ECIP-1114: Establishes a standard process for funding proposals (ECFPs).

Why this matters:
This is a positive development for ETC because it decentralizes how development is funded, reduces conflicts of interest, and aligns incentives through fee burning. It could improve the network’s long-term sustainability and encourage more community involvement.
(Ethereum Classic DAO)

2. Mystique Upgrade (February 2022)

Overview: This upgrade is backward-compatible and adopts features from Ethereum’s London hard fork, including EIP-3529 (which reduces gas refunds) and EIP-3541 (which updates the EVM object format).

Why this matters:
This upgrade is neutral for ETC users—it improves compatibility with Ethereum development tools and optimizes gas costs for developers but doesn’t change the user experience. It helps ETC stay aligned with EVM standards while keeping its Proof-of-Work consensus intact.
(Ethereum Classic Blog)

Conclusion

Ethereum Classic is evolving with the Olympia Upgrade to introduce decentralized governance and sustainable funding, while maintaining compatibility with Ethereum’s technology through upgrades like Mystique. The big question remains: will the DAO model attract enough developer interest to keep ETC competitive with newer Layer 1 blockchains?