Incoming Federal Reserve liquidity and bullish technical breakouts align to support a $1,000 price outlook for Zcash.
According to Arthur Hayes, former CEO of crypto derivatives exchange BitMEX, the value of Zcash (ZEC) might be preparing for an increase towards its “first stop” goal of $1,000.
Key Takeaways:
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ZEC is up 40% since Arthur Hayes' December 19 liquidity call, with privacy narratives gaining traction.
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Zcash charts are still targeting $1,000 in the long term, but a decline towards $400 mustn’t be ruled out.
ZEC/USDT each day chart. Source: TradingView
ZEC Price Jumps 40% After Hayes' Endorsement
Hayes' optimistic outlook for Zcash first surfaced in an interview on December 19, wherein he explained that liquidity can still return to markets even when the Federal Reserve never explicitly proclaims “quantitative easing” in 2026.
He said policymakers would depend on short-term financing operations and reserve management purchases to quietly pump money into the economic system without making headlines.
Hayes argued that if this happens, privacy and zero-knowledge technologies will once more turn into a dominant crypto narrative, positioning Zcash as a liquid proxy trade when risk appetite returns.
Since this interview aired, the ZEC price has increased by around 40%, rising to around $550. The move leads to an 82% recovery from the local low of nearly $300 reached only a month earlier.
ZEC/USDT each day price chart. Source: TradingView
The rise appeared much like Hayes' ZEC endorsement in October, when the value rose from around $75 to a multi-year high of $775.
The breakout of the ZEC triangle reinforces the $1,000 price goal
Crypto trader Crypto Curb highlighted that Zcash has broken out of its prevailing ascending triangle pattern while reclaiming its 50-week moving average (50-week MA) as support.
ZEC/USDT weekly chart. Source: TradingView/Crypto Curb
In his evaluation, the breakout structure left the door open for a direct expansion towards the $1,000 zone, especially if privacy-focused narratives gain traction in 2026.
In contrast, analyst Eric Van Quaste said that a ZEC price decline towards the $400 zone is feasible in the approaching days as a result of the prevailing rising wedge pattern.
ZEC/USD four-hour price chart. Source: TradingView/Eric Van Tasset
However, this potential downward move could be a “normal reset” that might remove excess leverage and permit for a deeper rally towards the $1,000 goal.
“Remember, now we have not seen an actual retest of $400 as the value was just under that at $404.60 on this chart,” Van Tassete wrote on Saturday, adding:
“[Market makers] I prefer to return and highlight these essential numbers. This further strengthens the case for doing this again because the measured movement of the rising wedge matches perfectly.”
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This article doesn’t contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their very own research when making their decision. While we attempt to offer accurate and up-to-date information, Cointelegraph doesn’t guarantee the accuracy, completeness or reliability of the data in this text. This article may contain forward-looking statements which are subject to risks and uncertainties. Cointelegraph won’t be responsible for any loss or damage arising out of your reliance on this information.
