Zcash continued its downward momentum on Thursday, trading near $1,241 and marking the weakest performance among the top 10 cryptocurrencies by market capitalization in the past day. The privacy-focused coin has now dropped roughly 27% from its September 27 peak of $1,698, extending a losing streak that has lasted about ten days.
Grayscale Zcash ETF faces ongoing outflows
Grayscale Investments, one of the world’s largest digital asset managers, saw its Zcash ETF (ZCSH) register $8.49 million in net outflows on Wednesday, according to data from SoSoValue. This brought the total outflows for the current week to $12.05 million, while last week saw redemptions reach $93.56 million. Although the latest figure covers only part of the week, it remains below the prior week’s withdrawals.
These outflows have followed the fund’s recent three-for-one share split. The timing of redemptions aligns with the split, but no direct evidence connects the split to heightened investor withdrawals. Still, sustained outflows signal muted demand for the fund amid Zcash’s ongoing price correction.
Investor demand has softened as large outflows from Grayscale’s Zcash ETF continue, even after the share split and a steep price drop for ZEC in recent days.
In contrast to these withdrawals, a fresh Zcash ETF filing backed by Cameron and Tyler Winklevoss, co-founders of Gemini, suggests ongoing interest in ZEC among institutional players. The new filing arrives 13 years after the Winklevoss twins first proposed a Bitcoin ETF in 2013, highlighting persistent efforts to expand regulated investment products linked to privacy-focused cryptocurrencies.
It is important to note that an ETF filing represents a proposal under regulatory review and does not guarantee product approval or new inflows to the asset. As a result, the new application stands in sharp contrast to immediate outflows affecting the existing Grayscale Zcash ETF.
Mini dictionary: Grayscale — A digital asset management firm known for its suite of cryptocurrency ETFs and trusts, which allow institutional and retail investors to gain exposure to digital assets such as Bitcoin, Ethereum, and Zcash through traditional investment vehicles.
| Period | Grayscale ZEC ETF Outflows |
|---|---|
| This week (so far) | $12.05 million |
| Last week | $93.56 million |
Zcash technical signals show continued downside risk
The technical outlook for Zcash has continued to deteriorate. ZEC has slipped below its 200-period exponential moving average (EMA) on the four-hour chart, located near $1,287. This level now acts as a primary resistance point. Remaining below this threshold risks reinforcing the coin’s short-term bearish structure.
The 50-period EMA, currently near $1,355, is declining toward the longer-term 200-period EMA. Should it cross below, it would create a so-called death cross, which signals the potential for further downside, even though it is not a definitive predictor of losses.
Technical momentum remains negative, with the MACD below its signal line and the RSI hovering around 33, pointing toward oversold conditions without confirming a price bottom.
If ZEC fails to reclaim $1,287, the next notable support zone lies at $1,050, matching the September 4 high. A sustained drop from current levels to $1,050 would represent an additional 16% decline for Zcash.
| Level | Price | Role |
|---|---|---|
| Current price | $1,241 | Active level |
| Resistance (200-period EMA) | $1,287 | Initial resistance |
| Resistance (50-period EMA) | $1,355 | Secondary resistance |
| Support 1 | $1,050 | Key support |
| Support 2 | $1,000 | Psychological level |
| Support 3 | $888 | Lower support |
If selling pressure intensifies, Zcash could test the psychological $1,000 mark, and below that, find horizontal support at $888, which aligns with the high registered on August 23. For a meaningful recovery, ZEC must first break above $1,287, followed by the 50-period EMA at $1,355. Until these resistance levels are reclaimed, continued ETF outflows and persistent weak momentum keep ZEC at risk of further correction.
