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ZEC has entered a sharp correction phase after a 1,500% rally that pushed the Zcash price to a seven-year high of nearly $744. The coin, which became the top-performing privacy asset in 2025, is now down over 25% from its all-time high as traders question whether its parabolic uptrend has finally peaked.
According to data from TradingView, ZEC began its meteoric rise in early September, breaking through long-term resistance levels at $400. However, analysts now warn that the asset may have reached its cyclical top.
Popular trader Altcoin Sherpa cautioned that such steep, prolonged rallies often “end with a sharp and painful collapse.” Similarly, technical indicators show ZEC’s RSI recently hit 94.2, an extreme overbought reading last seen during its 2017–2018 boom.
ZEC's price records sharp losses on the daily chart. Source: ZECUSD on Tradingview
Analysts Warn of Deep Pullback Toward $300–$400 Range
Multiple market observers expect a deeper correction in the weeks ahead. Trader Greeny noted that Zcash’s current rally is “the longest in its history” and could mirror previous cycles that ended with 45%–90% drawdowns.
On the daily chart, ZEC appears trapped within a corrective channel, suggesting further downside unless strong support emerges around the $400 zone.
Still, not all analysts are bearish. Technical analyst Valdrin Tahiri emphasized that ZEC’s MACD and RSI indicators, although overbought, exhibit no bearish divergence, suggesting that the pullback may be a temporary correction rather than the beginning of a prolonged downtrend.
If bulls manage to defend the $400 level, the coin could stabilize before resuming its broader bullish structure.
Arthur Hayes Sees Long-Term Upside Amid Fiscal Expansion
Adding intrigue to the ongoing correction, BitMEX co-founder Arthur Hayes recently reaffirmed his bullish stance on Zcash, predicting that both BTC and ZEC could benefit from renewed U.S. fiscal stimulus.
Hayes argues that as government liquidity increases, privacy coins like Zcash stand to gain as investors seek decentralized and censorship-resistant assets.
While short-term volatility dominates the charts, long-term holders remain confident. Zcash’s advanced zk-SNARKs technology continues to position it as a key player in privacy innovation, and if fiscal easing drives another liquidity wave, ZEC could yet stage a remarkable comeback.
Cover image from ChatGPT, ZECUSD chart from Tradingview
