Inflation worries push Zcash toward $1,000 despite ETF inflows

Key points

• On Thursday, Zcash was changing hands around $1,111, following a drop of roughly 6% a day earlier.
• A four-hour close below $1,115 that holds could put $1,050 and then $1,000 in play as support zones.
• To ease the near-term bearish outlook, ZEC needs to win back the area between $1,242 and $1,264.

ETF inflows return, but Zcash keeps falling

Thursday brought fresh losses for Zcash, with inflation worries dragging on the wider crypto market and muting the effect of renewed buying in Grayscale's Zcash-focused ETF.

At the time of writing, ZEC was near $1,094, after losing roughly 6% in the previous session. The move carried the privacy coin below last week's $1,115 low, although a sustained four-hour close beneath that level was still needed to confirm the breakdown.

The latest retreat extends the pullback from Zcash's late-September peak of $1,698. With momentum indicators still turning down, attention has shifted to whether buyers can prevent a deeper slide toward $1,000.

US inflation ran at 3.7% on a yearly basis, per the supplied report, ahead of the 3.6% that had been expected.

The higher number strengthened concerns that price pressures would persist and that interest rates could rise again, dulling crypto appetite.

A fragile bitcoin around $80,000 added to the cautious backdrop. If the largest crypto weakens further, selling could intensify across altcoins, including Zcash.

Those macro pressures have restrained the benefit of firmer demand through ZEC investment products, leaving the token under strain despite Wednesday's positive fund flows.

Grayscale's ZCSH draws $3.68 million

On Wednesday, Grayscale's Zcash fund ZCSH recorded $3.68 million of inflows, per SoSoValue data cited in the report.

The inflows ended two straight days of withdrawals, which came after two weeks of net outflows. It was an early sign that demand through the fund could be returning.

Still, one positive session does not confirm a durable recovery in investor appetite. Zcash's ongoing decline in the spot market points to selling pressure that remains hard to overcome.

Whether ZCSH can pull in more inflows will help show if Wednesday's improvement turns into a longer-lasting trend.

Zcash probes support under $1,115

The four-hour chart keeps a bearish bias, with Zcash trading clearly below two important moving averages.

The 50-period exponential moving average sits near $1,242, while the 200-period EMA is around $1,264. Together they create an overhead resistance zone that could hinder attempts to recover.

Momentum studies echo the weak tone. The Moving Average Convergence Divergence indicator and its signal line remain under zero, with histogram bars deeply negative.

The RSI sits around 34, pointing to subdued momentum but staying just above the conventional oversold mark of 30.

The immediate question is whether ZEC can confirm a sustained break under $1,115. A four-hour close below that level would make the bearish case more credible and lift the odds of another leg lower.

If the downside break holds, support at the September 4 high near $1,050 becomes the next reference, followed by the psychological $1,000 mark.

If $1,000 is not defended, the August 23 high near $888 could come into view, but only after Zcash gives up the support levels in between.

On the upside, buyers face an initial test at the 50-period EMA around $1,242, with the 200-period EMA near $1,264 just above.

Getting back above that resistance area would ease some downside pressure. The token remains at risk of further losses until that happens, given soft momentum and broad market caution, with $1,115 still the key level to watch.