Key takeaways
- Zcash trades around $1,348 on Tuesday, holding modest gains that began Sunday.
- NU7 is active on the public testnet, with a mainnet decision scheduled for Oct. 20 and deployment targeted for Nov. 5.
- Improving momentum supports recovery prospects, but ZEC must clear resistance around $1,377–$1,384.
Zcash is consolidating below $1,348 on Tuesday, maintaining modest gains from Sunday as investors assess slower ETF withdrawals and progress toward the network’s next upgrade.
The privacy-focused cryptocurrency faces a mixed near-term picture. Momentum indicators are improving, but its price remains below two important moving averages on the four-hour chart.
Meanwhile, smaller withdrawals from Grayscale’s Zcash-focused fund suggest redemption pressure has moderated.
However, outflows remain negative, meaning the latest figures indicate reduced selling through that channel rather than renewed net buying.
The combination provides a more supportive backdrop for recovery, although a sustained price breakout has yet to materialize.
NU7 tests faster blocks and revised mining rewards
Zcash’s NU7 upgrade is now active on the public testnet. Developers are scheduled to decide on mainnet activation on Oct. 20, with Nov. 5 remaining the target deployment date.
The upgrade reduces targeted block spacing from 75 seconds to 25 seconds. Producing blocks more frequently could shorten confirmation waits, although it does not guarantee that every transaction will complete three times faster.
Actual block intervals and the confirmation requirements set by individual services still matter.
NU7 also introduces a Network Sustainability Mechanism that redirects 60% of transaction fees toward future mining rewards. Another change limits shielded actions to help reduce network spam.
If activated on mainnet, the upgrade would disable legacy Sprout version 4 transactions. Users with funds remaining in that pool would need to move them beforehand to retain the ability to spend them through the existing system.
These changes remain in testing. Their potential benefits have not yet been deployed across the live Zcash network.
Grayscale’s ZCSH fund recorded approximately $3.57 million in net outflows on Monday, according to SoSoValue data.
That followed $93.56 million in total withdrawals last week, including three sessions with more than $25 million in outflows each.
Monday’s smaller withdrawal represents an improvement from those individual sessions. However, comparing one trading day with an entire week does not establish how the current week will finish.
The latest data suggests less immediate pressure from redemptions, while leaving the direction of future flows uncertain. A return to sustained inflows would provide stronger evidence that demand through the fund is recovering.
Improving momentum meets overhead resistance
On the four-hour chart, ZEC remains below its 50-period and 100-period exponential moving averages at approximately $1,377 and $1,384.
That cluster forms the immediate resistance zone. A sustained move above both averages would improve the near-term structure and bring $1,422, the broken Sept. 18 low, into focus.
Beyond that level, the Sept. 23 high at $1,679 represents a more distant upside reference.
Momentum indicators offer some encouragement. The Moving Average Convergence Divergence has crossed above its signal line, with its histogram expanding into positive territory.
The Relative Strength Index is near 50, indicating broadly neutral momentum. The supplied analysis also identifies a bullish divergence, suggesting selling momentum may be weakening, though price confirmation remains necessary.
The rising 200-period EMA near $1,281 provides the immediate support reference beneath the current consolidation.
Holding that level would preserve the possibility that recent weakness is a correction within the broader recovery. A sustained break below it would weaken that interpretation and expose the next cited support near $1,050.
For now, Zcash remains between a rising support average and overhead resistance. Slower ETF withdrawals and improving momentum help the recovery case, but clearing $1,377–$1,384 would provide a more concrete bullish signal.
