Zcash Pullback Risk Rises as ADA and ETH Reach Key Levels
Zcash (ZEC) surged 150% in one month and 2,450% over the past year, briefly reaching nearly $1,300 and taking its market capitalisation above $20 billion. The rally was partly linked to expectations surrounding a Grayscale ZEC ETF. However, ZEC later fell 8.5% on September 11, becoming the weakest performer among the top 100 cryptocurrencies.
ZEC’s short-term outlook has become more volatile. Analyst Ali Martinez said the TD Sequential indicator issued a sell signal on the three-day chart. A similar signal preceded a 64% correction. ZEC’s RSI is above 70, indicating overbought conditions, while rising transfers from self-custody wallets to centralised exchanges could increase selling pressure. Analysts have identified $1,000-$1,100 as a potential support zone, with $1,050 viewed as an important level for preserving the broader uptrend. Some bullish forecasts still see a much higher target if renewed FOMO emerges.
Cardano (ADA) has risen 12% over the past month and remains above $0.20. A recovery above $0.25 could open a path towards $0.30, while a break below $0.2051 may expose ADA to deeper losses. Long-term forecasts remain highly divided, including an $8 target during a major altcoin season.
Ethereum (ETH) is trading near $2,500. A sustained move above $2,520-$2,550 could support a rally towards $3,000. The withdrawal of 116,000 ETH, worth nearly $300 million, from centralised exchanges may reduce immediate sell-side liquidity. However, some analysts expect ETH to fall towards $2,000 before potentially advancing towards $4,000. Traders should monitor ZEC support, ADA’s $0.25 resistance and ETH’s $2,520-$2,550 breakout zone.
Bearish
The immediate price outlook is bearish, led by Zcash, the main asset discussed. ZEC’s rapid gains, RSI above 70 and TD Sequential sell signal indicate elevated short-term correction risk. The previous comparable signal was followed by a 64% decline, while increased transfers to exchanges may add selling pressure. The 8.5% daily drop also shows that momentum is already weakening.
ADA and ETH offer mixed signals rather than a clear market-wide bullish offset. ADA needs to reclaim $0.25 to strengthen its upside case, while a break below $0.2051 could trigger further losses. ETH may benefit from exchange outflows, but it still faces resistance at $2,520-$2,550 and could first fall towards $2,000. Longer term, strong support levels, potential ETF-related demand and reduced exchange balances could help restore bullish momentum. However, until key resistance levels are decisively broken, traders are more likely to face profit-taking, sharp volatility and downside risk.