Zcash (ZEC) is finding its footing again on Monday, climbing above $1,250 as investors turn their attention to an upcoming network upgrade and a proposed change to how development funding is distributed.
The privacy-focused cryptocurrency traded around $1,253, supported by renewed inflows into Zcash investment products and a modest rebound in futures positioning.
The recovery comes ahead of Network Upgrade 7 (NU7), scheduled for November 5, and follows a shift in the debate over community grant funding.
Zcash upgrade and funding proposal draw attention
NU7 is expected to shorten Zcash’s block interval from 75 seconds to 25 seconds, allowing transactions to receive confirmations more quickly. The upgrade will also disable the legacy Sprout pool and its transactions.
Meanwhile, Zcash Open Development Lab founder Josh Swihart said Monday that he now supports a compromise put forward by Zcash co-founders Sean Bowe and Zooko Wilcox-O’Hearn.
The proposal would end the 8% share of block rewards currently directed to Zcash Community Grants (ZCG), moving that allocation into a proposed Future Dev and Legal Defense Fund lockbox.
Under the arrangement, ZCG would contribute 50,000 ZEC to the Network Sustainability Mechanism, while existing grants would continue to be funded from its current treasury.
The proposal has not been described as finalized, but Swihart’s endorsement puts fresh attention on how the network plans to support development over the longer term.
Investor demand has also improved. According to the figures from SoSoValue, Zcash-linked investment products took in $17.72 million last week, following $41.09 million the week before.
Those gains came after three consecutive weeks of outflows following a late-September 3-for-1 share split.
The return of inflows suggests selling pressure may be easing, although two positive weeks are not enough to establish a lasting change in demand. The approaching upgrade and funding discussions give traders additional developments to watch.
In derivatives markets, CoinGlass data puts ZEC futures Open Interest at $2.54 billion, up from $2.47 billion on Sunday and $2.3 billion on Saturday.
That is still below Tuesday’s 2.18 million ZEC, so the rebound is best viewed as a partial recovery in positioning rather than a full return of speculative demand.
Zcash price forecast: $1,385 is the next test
On the daily chart, ZEC is holding above a rising trendline connecting the October 18 and October 30 lows, with trendline support near $1,215.
Buyers have also reclaimed the 50-period Exponential Moving Average (EMA) at $1,250 and the 200-period EMA at $1,240.
The Relative Strength Index (RSI) sits at 50, indicating that momentum has moved toward neutral territory.
The Moving Average Convergence Divergence (MACD), however, remains subdued below its signal and zero lines. Together, the indicators point to improving stability rather than a decisive bullish breakout.
The first major upside hurdle is $1,385, a resistance level that has held since October 6. A sustained move above it could bring the Fibonacci extension levels around $1,493 and $1,644 into view, based on the decline from $1,385 to the October 18 low at $1,049.
If the rebound stalls, the 50-period and 200-period EMAs at $1,250 and $1,240 form the nearest support area. Below that, the rising trendline around $1,215 and the 50% retracement near $1,205 could offer another opportunity for buyers to step in.
A sustained move below those levels would weaken the short-term recovery case. For now, Zcash has several potential catalysts, but traders still need to see whether the recent buying can carry the price through $1,385 rather than simply hold it above nearby support.
The post Zcash eyes $1,385 as ETF inflows return ahead of NU7 upgrade appeared first on Invezz
