Zcash Price Outlook: Can Incoming Federal Reserve Liquidity and Bullish Technical Breakouts Support a $1,000 Target?
According to Arthur Hayes, former CEO of crypto derivatives exchange BitMEX, the price of Zcash (ZEC) could be preparing for a rise towards its “first stop” target of $1,000. This prediction is based on the potential for incoming Federal Reserve liquidity and bullish technical breakouts in the cryptocurrency market. Hayes’ optimistic outlook for Zcash first surfaced in an interview on December 19, in which he explained that liquidity can still return to markets even if the Federal Reserve never explicitly announces “quantitative easing” in 2026.
Hayes argued that policymakers would rely on short-term financing operations and reserve management purchases to quietly pump money into the financial system without making headlines. He believes that if this happens, privacy and zero-knowledge technologies will once again become 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 about 40%, rising to about $550. The move results in an 82% recovery from the local low of nearly $300 reached just a month earlier.
The rise appeared similar to Hayes’ ZEC endorsement in October, when the price rose from around $75 to a multi-year high of $775. 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.
Technical Analysis: Breakout Structure and Price Targets
In his analysis, 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. However, analyst Eric Van Quaste said that a ZEC price decline towards the $400 zone is possible in the coming days due to the prevailing rising wedge pattern.
However, this potential downward move would be a “normal reset” that would remove excess leverage and allow for a deeper rally towards the $1,000 target. Van Quaste wrote on Saturday, adding: “[Market makers] I like to go back and highlight these important numbers. This further strengthens the case for doing this again as the measured movement of the rising wedge matches perfectly.”
Conclusion and Investment Considerations
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