Zcash prices fall below $820 after hitting eight-year highs

Zcash prices fall back after soaring 70% in a week, as ETF planning and governance votes become catalyst

Zcash (ZEC) prices have soared more than 70% in the past week, hitting an eight-year high of about $885, before falling back below $820. Grayscale's ETF conversion plan and the NU7 governance vote attracted traders 'attention to the token.

Summary of Points

ZEC broke through the key resistance level of US$750, setting its highest price since 2018. Gray's amendment filing aims to convert its Zcash trust into a spot ETF listed on the New York Stock Exchange Arca. NU7 voting eligibility depends on the number of blocked ZECs held at the time of the network snapshot on August 24. Technical charts show support near $812 and $750, while $875 is near-term resistance.

Zcash fell back after hitting US$885

According to exchange data, as of press time, Zcash (ZEC) prices traded around US$820 after hitting approximately US$885 earlier. The privacy coin has risen more than 70% in the past seven days, reaching its highest level since 2018.

The rally accelerated after ZEC broke through US$562.50 (the previous upper rail of the daily trading range). Buyers then continued to break through key prices such as $625,$687.50 and $750. ZEC once rose 77% from the August consolidation area (about US$500), and then suffered selling suppression around US$875. The K-line eventually fell by about 4% that day, and the price fell from around the opening price of US$854 to about US$820.

This correction did not completely disrupt the overall breakthrough pattern. ZEC remains above $750, a level previously regarded by Rand Group as a key resistance level and pointed out that this level needs to be transformed into support to start a new round of gains.

The daily Bull Bear Power indicator read 376.58, indicating that buying pressure remains high despite the correction. However, the recent increase in this indicator also reflects the speed and extent of ZEC's previous departure from the consolidation range.

Grayscale ETF applications bring institutional catalysts

The price rise follows the latest revised registration statement of the Grayscale Zcash Trust submitted by Grayscale Investments. Gray is seeking to convert existing trusts into exchange-traded products, which are expected to be traded on the New York Stock Exchange Arca under the code ZCSH. An accompanying document shows that stocks are expected to start trading around August 25, subject to regulatory approval.

The proposed structure would allow eligible U.S. investors to gain ZEC exposure through regulated brokerage products without directly holding the token. The registration statement does not mean that the U.S. Securities and Exchange Commission (SEC) has approved the conversion, and the planned listing date is still pending the completion of the regulatory process.

The filing also disclosed non-binding discussions involving Digital Currency Group subsidiary DCG International Investments Ltd. Depending on the potential transaction, the company could contribute approximately 200,000 ZECs to the trust in exchange for shares. Based on the valuation at the time of revision of the document, the proposed contribution is worth approximately US$110 million. The document describes the transaction as still under discussion and therefore should not be considered a completed ZEC purchase or a confirmed capital allocation.

Gray reported that as of August 21, the trust's assets under management were approximately US$263.5 million. The proposed conversion would allow a privacy-focused crypto asset to enter the U.S. spot ETF market, although Zcash still faces regulatory and exchange access risks due to its privacy features.

NU7 vote follows Ironwood snapshot

Another Zcash-related event, the NU7 vote, may have increased the need to block ZEC ahead of this rally. According to the NU7 voting announcement on the Zcash Community Forum, Valar Group and Project Tachyon plan to conduct a vote for token holders for approximately 18 days starting on August 25.

Voting eligibility is based on the disposable, blocked ZECs held in the Ironwood pool at the main network block height of 3,459,350. The snapshot is expected to take place around 19:00 UTC on August 24, after which holders can transfer funds without losing voting rights. Voting will close at 19:00 UTC on September 14. The process requires at least 1 million eligible ZECs to meet the minimum participation threshold, and supported crypto wallets allow holders to vote anonymously and only publish summary results.

The voting will help determine the scope of planned NU7 network upgrades, including possible modifications to the Zcash release plan and block production model. Snapshots may prompt some holders to transfer tokens into the Ironwood blocked pool, but existing data cannot determine how much of the price increase comes directly from vote-related transfers.

Zcash prices face resistance at US$875

The 4-hour chart shows that ZEC is still above the middle track of the Bollinger Band (approximately US$803.35). Holding this level will keep the short-term breakthrough structure intact, while continuing to fall below this level may hit the psychological barrier of $800.

ZEC's 4-hour Relative Strength Index (RSI) has fallen back to 62.89 after previously entering overbought territory. The indicator's moving average remains at a high level of 72.14, indicating that momentum has cooled as prices have retreated from highs.

is between $870 and $875. The daily Murrey Math Chart marks $875 as an extreme overshoot level, while the upper track of the 4-hour Bollinger Band is near $910.56. Decisively closing above $875 may cause buyers to test $910 and challenge $937.50. The daily chart shows that the $937.50 area is a range where the risk of bearish reversal may increase.

On the downside side, US$812.50 is the first key level to pay attention to. At the time of the chart interception, ZEC was only slightly above that line, making it a direct test for buyers after an intraday reversal. After falling below US$812.50, the middle track of the Bollinger Band (approximately US$803) and the previous breakthrough level of US$750 will provide subsequent support areas. A break below $750 will weaken the breakthrough pattern and may open up room for a deeper pullback towards $696 and $687.50.

Clearing clusters may exacerbate ZEC volatility

CoinGlass's 24-hour clearing heat chart shows that there are concentrated leveraged positions on both sides of ZEC market prices. The largest cluster of upward liquidity in recent times has occurred in the approximately $872 to $874 area, consistent with the chart's immediate resistance. There are additional clearing levels around $882 to $886, which could attract prices if ZEC regains upward momentum.

Below the market price, there is a strong liquidity concentration area near US$818 to US$820, and there is further liquidity around US$808 and US$800. ZEC moved towards these lower clusters during the late decline, then rebounded above $817.

The liquidation heat chart shows where leveraged positions may face forced liquidation, but it is impossible to predict which level the price will reach first. After ZEC gained more than 70% weekly, trading between dense clusters near $800 and $875, sharp fluctuations in either direction could trigger a new round of liquidation.

Statement: This article does not constitute investment advice. The content and materials on this page are for educational purposes only.