Can Europe’s Zcash ETP keep ZEC above $1600 amid THESE signals?

The privacy dominant coin Zcash [ZEC] surged past $1600 for the first time since 2016, marking a major shift toward a longer-term recovery. The move extended after buyers cleared $1,300, $1,400, and $1,500, with each level becoming a launchpad for the next advance.

ZEC had risen to approximately $1670 before retracing back down to $1626.20. This indicates that there are still many buyers holding this breakout level. Still, rising volume during the strongest advances also points to broader participation behind the move.

Meanwhile, RSI stood at 71.16, indicating overbought, stretched momentum due to the aggressive upward movement. That leaves ZEC vulnerable to a short-term pullback as buyers test whether demand can absorb profit-taking.

Holding $1,600 would keep $1,670 within reach. Consequently, losing it could expose $1,400 support.

ZEC gains European access

Zcash’s move above $1,600 came as regulated access to the asset expanded across major markets. 21 Shares announced that they are launching Europe’s first physically backed Zcash ETP on both Euronext Paris and Amsterdam.

This will give all brokerage customers who want to buy Zcash direct exposure to the cryptocurrency, eliminating their need to handle the currency themselves.

Since it is an exchange-traded product that actually holds Zcash, the amount of money invested by customers should flow directly into the purchase of the underlying Zcash.

The announcement came after Grayscale announced that they will be offering a U.S.-based Spot Zcash ETF. However, at approximately $100,000 in initial investments, the impact of the European ETP was somewhat limited in terms of price movement at the time of its introduction.

Nevertheless, the increased number of potential investors for Zcash due to additional regulation provides another institutional buying mechanism in addition to the growing level of speculative interest, which has driven recent price breaks.

ZEC leverage amplifies the rally

The rally has increased new leverage that is magnifying the price movement from spot demand to beyond it. In the last 24 hours, open interest increased by 13.35%, reaching a high of $2.3 billion.

This indicates there are many traders continuing to add to their positions as the momentum strengthens.

Much of that exposure is at Hyperliquid or Binance, each holding about $876 million. The concentration of these accounts makes derivatives more relevant for ZEC’s price development.

Meanwhile, trader 0xE34E has an open 50x-long position with a value of approximately $223,563, earning him approximately $70,694 in unrealized profit.

As such, the leverage will continue to help drive upside. However, it will be much more sensitive to potential liquidations and reversals.

Final Summary