Zcash Price Forecast: NU7 Cuts Blocks 3x, ZEC Eyes $1,679 Post-Testnet Rally

Zcash (ZEC) is holding near $1,348 as traders assess the impact of the network’s NU7 upgrade and changing institutional flows. The upgrade activated on the public testnet at block 4,465,026 on October 5, moving Zcash closer to a planned November 5 mainnet rollout. Developers are scheduled to review the test results and make the mainnet activation decision on October 20.

NU7 is designed to cut Zcash’s target block interval from 75 seconds to 25 seconds, reducing confirmation latency by roughly threefold. The upgrade also introduces a Network Sustainability Mechanism under which 60% of transaction fees are removed from circulation and reserved for future mining rewards, while miners retain the remaining 40%.

For traders, the upgrade matters because faster confirmations could improve the network’s usability without changing Zcash’s overall issuance schedule. The block subsidy is adjusted lower to account for the more frequent blocks, preserving the amount of ZEC issued per day and the existing halving framework.

ETF outflows ease as ZEC stabilizes

Institutional flows have also become an important variable for the ZEC price outlook. Recent data showed weekly outflows of about $93.56 million from U.S. Zcash investment products through October 5, marking the first weekly outflow since trading began in August. ZEC was around $1,340 on October 6, remaining more than 30% higher over the previous month despite the recent pullback.

A sustained reduction in selling pressure could give buyers more room to respond to NU7-related optimism. However, the testnet phase remains a key risk because the mainnet activation date is still a target rather than a completed deployment.

Key developments to watch include:

• October 20: expected NU7 mainnet activation decision.
• November 5: current target for mainnet activation.
• 25 seconds: new target block spacing versus 75 seconds.
• 60%: share of transaction fees directed into the future-reward reserve.

ZEC technical setup points higher

The technical outlook for Zcash remains constructive, although ZEC faces resistance before a decisive recovery can develop. At around $1,348, the token is trading close to its short-term moving averages. Current market data show the 50-period and 100-period exponential averages near $1,330 and $1,345, while the 200-period exponential average is higher near $1,382, making that area an important test for bulls.

A sustained move above the broader moving-average resistance would strengthen the bullish case and put the September 18 low near $1,422 into focus. Beyond that level, the September 23 high around $1,679 represents the next major upside target from the original technical structure.

Momentum indicators also favor a recovery. The latest technical readings show an RSI near 56 and a positive MACD signal, although the Stochastic RSI is already elevated, suggesting that short-term volatility could increase if buyers fail to clear overhead resistance.

On the downside, traders should monitor the $1,280-$1,300 region as a key support area. A decisive break below that zone would weaken the bullish setup and shift attention toward lower structural levels.

Conclusion

Zcash enters a critical phase as NU7 moves through public testing ahead of its targeted November 5 mainnet activation. Faster 25-second blocks, the 60% fee-reserve mechanism and easing institutional pressure provide potential catalysts for ZEC. A break above $1,422 would strengthen the recovery case, while $1,679 remains the key upside objective.