Zcash Consolidates Near $1,348 as NU7 Upgrade Nears Testing

Zcash (ZEC) is trading around $1,348 on Tuesday, holding onto modest gains that began over the weekend. The privacy-focused cryptocurrency is consolidating as investors weigh slower ETF outflows and the progress of its upcoming NU7 upgrade, which is now live on the public testnet. While momentum indicators are improving, ZEC's price remains below key moving averages on the four-hour chart, suggesting a mixed near-term outlook.

The NU7 upgrade, if approved for mainnet activation on October 20, aims to deploy by November 5. This upgrade includes faster block production, reducing targeted block spacing from 75 seconds to 25 seconds, and introduces a Network Sustainability Mechanism that redirects 60% of transaction fees toward future mining rewards. However, these changes are still under testing, and their full impact on the live network remains uncertain.

On the investment front, Grayscale’s Zcash-focused fund (ZCSH) saw approximately $3.57 million in net outflows on Monday, a significant drop from the $93.56 million in total withdrawals recorded last week. While this suggests easing redemption pressure, outflows remain negative, indicating reduced selling rather than renewed buying. The latest data hints at less immediate pressure, but the direction of future flows remains unclear.

Technically, ZEC faces resistance around $1,377, $1,384. A sustained break above this level would signal stronger recovery prospects, with the next upside target at $1,422. Support is currently near the rising 200-period exponential moving average at $1,281. Holding this level would preserve the possibility of a broader recovery, while a break below it could expose further downside risk.