Zcash Price Forecast: ZEC Eyes $1,698 as NU7 Upgrade Lifts Bullish Momentum

Zcash (ZEC) climbed above $1,200 on Wednesday after rebounding 9% in the previous session, as traders assessed the upcoming NU7 network upgrade and signs of improving institutional demand. The token’s technical structure has strengthened, with prices holding above key moving averages and momentum indicators favoring further gains. Developers are targeting a November 5 mainnet activation for NU7, which is designed to reduce block intervals from 75 seconds to 25 seconds. However, the upgrade’s final deployment requirements remain important, while $1,296 stands between ZEC and its potential $1,698 price target.

NU7 Upgrade Supports Zcash Demand

Zcash’s upcoming NU7 upgrade is attracting attention because it aims to improve transaction confirmation speeds and adjust the network’s long-term fee management. Developers have agreed on a target activation block expected around November 5, although the deployment specification and supporting node software still require final integration.

The upgrade would reduce target block spacing to 25 seconds from 75 seconds, potentially making payments and exchange deposits faster. It would also disable legacy version 4 transactions and introduce the Network Sustainability Mechanism, which removes 60% of transaction fees from circulation for potential reissuance through future block rewards beginning in 2031. Funds remaining in Zcash’s older Sprout privacy pool would become unspendable after activation, making migration a critical consideration for affected holders.

Network activity also provides a fundamental signal. Blockworks’ third-quarter report showed Zcash transactions increased 21% to approximately 710,000. This growth suggests greater network usage, although transaction counts alone do not establish sustained demand for ZEC or guarantee higher prices.

Institutional flows offer another indicator to monitor. According to the figures provided in the market report, the Bitwise Zcash-focused exchange-traded fund recorded $1.61 million in inflows on Tuesday, following $10.45 million in outflows on Monday. The shift suggests selling pressure may be easing, but additional sessions are needed to establish a durable reversal.

ZEC Price Forecast: $1,296 in Focus

ZEC traded near $1,260 in the supplied market data, holding above its four-hour 50-period and 200-period exponential moving averages at $1,181 and $1,230, respectively. The recent rebound also pushed prices above a descending resistance trendline, which now offers potential support near $1,183.

The immediate test is $1,296, a horizontal resistance level associated with the September 9 high. A sustained breakout could open a path toward $1,698, the September 26 peak. The four-hour Relative Strength Index (RSI), near 65, indicates positive momentum without yet reaching the conventional overbought threshold of 70. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator continues to point upward, supporting the near-term bullish case.

Key levels define the next move:

• $1,296: Immediate resistance and breakout trigger.
• $1,698: Potential upside target if resistance breaks convincingly.
• $1,230: Support at the 200-period EMA.
• $1,183–$1,181: Lower support zone combining the broken trendline and 50-period EMA.

Risks That Could Reverse the Rally

Despite improving momentum, ZEC remains vulnerable to profit-taking if buyers fail to clear $1,296. A rejection at that level could send prices back toward $1,230, while a deeper decline could test the $1,183–$1,181 support zone. A break below this area would weaken the bullish structure.

The NU7 upgrade also carries execution risks. Faster block production depends on successful implementation, while changes affecting legacy transactions require attention from users and network infrastructure operators. Traders should distinguish expectations surrounding the upgrade from confirmed technical progress.

Conclusion

Zcash’s recovery above $1,200, stronger network activity and positive four-hour indicators favor further upside. A confirmed break above $1,296 would strengthen the case for a move toward $1,698. Until then, support near $1,230 and $1,181 remains essential to preserving the bullish outlook.