Zcash Holds Near $1,348 as ETF Outflows Slow and NU7 Upgrade Tests Continue
Zcash (ZEC) is trading just below $1,348 on Tuesday, holding onto modest gains that started on Sunday. The privacy-focused cryptocurrency is consolidating as investors react to slower ETF outflows and the ongoing testing of the network’s upcoming NU7 upgrade. While momentum indicators are showing improvement, ZEC remains under key resistance levels around $1,377, $1,384.
The NU7 upgrade is now active on the public testnet, with a mainnet decision scheduled for October 20 and a targeted deployment date of November 5. This upgrade aims to reduce block spacing from 75 seconds to 25 seconds, potentially speeding up transaction confirmations. It also introduces a Network Sustainability Mechanism that redirects 60% of transaction fees toward future mining rewards.
Grayscale’s Zcash-focused fund, ZCSH, saw approximately $3.57 million in net outflows on Monday, down from the previous week’s total of $93.56 million. Although the recent withdrawal is smaller, it’s too early to determine if this signals a shift in demand. The data suggests reduced selling pressure, but not necessarily a return to net buying.
On the four-hour chart, ZEC is trading below its 50-period and 100-period exponential moving averages, which form key resistance at around $1,377 and $1,384. A sustained move above these levels could signal a stronger recovery, with the next major resistance at $1,422. Support is currently at the rising 200-period EMA near $1,281, with further downside risk below that level.