Ethereum Classic (ETC) has jumped over 33% in the last week, breaking out of a long-term trading range. This powerful rally is being fueled by more than just general market hype; it’s backed by a fundamental shift to a deflationary token model and soaring interest from traders.
The altcoin was trading at about $24.56 on Saturday, with a 24-hour volume of around $2 billion.
ETC Surge Backed by Rising Open Interest
The ETC bullish sentiment follows a gradual increase in its Open Interest (OI) from around $116 million on April 10, 2025, to about $311 million on July 19. The rising ETC OI is an indication of renewed interest from speculative crypto traders.
According to market data analysis from Coinglass, the ETC funding rate has turned positive in the last two weeks after a prolonged negative funding rate. Historically, a sustained positive funding rate has preceded bullish sentiment.
Olympia Upgrade introduces new deflationary model
A key driver behind this new interest is the network’s Olympia Upgrade, which was implemented in May. This update introduced the EIP-1559 fee reform, a mechanism that burns a portion of every transaction fee.
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This permanently removes tokens from the circulating supply, creating a deflationary model for ETC and giving it “sound money” properties that are attracting investment.
Technical Breakout and Bullish Indicators
From a technical analysis standpoint, ETC price has been consolidating in a horizontal range between $14.5 and $40, since late 2022. The recent pump above $25 has invalidated the year-to-date falling trend, and confirmed a new uptrend with a midterm target of $40.
The ETC price bullish sentiments are bolstered by the daily MACD line that recently surged above the zero line amid increasing bullish histograms. Additionally, the daily Relative Strength Index (RSI) has surged above the 70 level for the first time in 2025.
Broader Crypto Market Recovery and Sentiment
The ETC price has recorded bullish sentiment amid the wider crypto market recovery. Earlier this week, the total crypto market cap surged above $4 trillion for the first time since the inception of Bitcoin.
Related: BlackRock Buys More Ethereum Than Bitcoin, Signaling Big Shift Toward Altcoins
The passage of the three crypto bills in the United States – the Clarity Act, the GENIUS Act, and the Anti-CBDC Act – has increased the capital inflow to the altcoin market. Moreover, the spot Ethereum ETFs outpaced the Bitcoin’s counterpart in net cash inflow this week.
