Zcash (ZEC) is trading higher on Monday, recovering from a bearish weekend as renewed demand for its exchange-traded fund (ETF) offers a potential catalyst for a sustained price recovery. The privacy-focused cryptocurrency is currently hovering around $1,200, according to press time data.
Despite the rebound, ZEC remains down over 15% in October. While ETF inflows signal improving investor appetite, the short-term technical outlook stays cautious, with the asset trading below key moving averages on the four-hour chart.
Grayscale ETF Inflows Break Three-Week Losing Streak
Grayscale's Zcash ETF recorded four consecutive daily inflows last week, totaling $41.09 million, according to SoSoValue data. This marks a reversal after three straight weeks of outflows, indicating renewed interest in gaining exposure to the privacy coin.
However, the positive fund flows have not yet translated into a convincing uptrend for ZEC. The price remains under pressure, highlighting the disconnect between stronger ETF demand and broader market momentum.
The inflows come ahead of Zcash's Network Upgrade 7 (NU7), scheduled for November 5. The upgrade will reduce block confirmation time to 25 seconds and disable the Sprout pool, a legacy privacy feature. While this provides a forthcoming network catalyst, it does not fully explain the recent fund inflows.
Technical Resistance Levels to Watch
On the four-hour chart, Zcash is trading below its 50-period exponential moving average (EMA) at $1,207 and its 200-period EMA at $1,231. These levels represent immediate resistance for buyers following the decline from the September 26 high of $1,698. A sustained move above them would improve the short-term outlook, but additional resistance lies ahead.
Momentum indicators are mixed. The Relative Strength Index (RSI) is near 47, slightly below the neutral 50 mark, suggesting buyers have yet to gain full control. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator is slightly positive near the zero line, indicating that selling pressure may be easing, though it does not yet signal a strong recovery.
Beyond the moving averages, $1,268 serves as an intermediate hurdle. The larger challenge is the supply zone between $1,296 and $1,385, which capped last week's rebound near $1,368. Clearing this zone would strengthen the bullish case, potentially targeting the September swing high near $1,698.
If Zcash extends its decline, the next notable support is around $1,117, corresponding to the September 4 high. Below that, the psychological $1,000 threshold becomes a critical level to monitor.
For now, returning ETF inflows offer an encouraging demand signal, but price confirmation remains essential. Reclaiming the moving averages and breaking through the overhead supply zone would provide stronger evidence that Zcash is moving beyond its recent bearish phase.
This article is for informational purposes only and does not constitute financial advice.
