Zcash rises to new highs on first European ETP, but erases gains as oil prices and rate hike bets bite

<p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 104%; font-size: 15px;">FUNDAMENTAL OVERVIEW</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 104%; font-size: 15px;"> </p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;"> </p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 103%; font-size: 15px;">Zcash extended the gains into new highs this week after the <a href="https://cointelegraph.com/news/21shares-zcash-etp-europe-etherfi" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">European asset manager 21shares has launched the first European ETP</a> tied to Zcash. Moreover, on September 28, <a href="https://www.binance.com/en/square/post/368758144390978" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">Grayscale's Zcash ETF (ZCSH) is scheduled to undergo a 3-for-1 share split</a>, with split-adjusted trading beginning September 30. This could increase accessibility and retail trading activity, giving Zcash another boost.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">On the macro side, the significant drop in oil prices on growing expectations of a de-escalation and an earlier end to the conflict supported risk assets recently. At the UN General Assembly, though, Trump poured some cold water on those expectations as he repeated that the US would make a deal with Iran after the November elections. </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">The general risk sentiment started to deteriorate after that and dragged cryptocurrencies lower. Eventually the bearish momentum increased yesterday after the <a href="https://investinglive.com/news/investinglive-americas-market-news-wrap-strong-us-services-pmi-leads-to-a-big-breakdown-in-bonds/" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">US Flash PMIs</a> showed a much stronger growth than expected and triggered another hawkish repricing that sent Treasury yields to new highs.  </p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: normal; font-size: 15px;">The focus will remain on interest rates expectations and Middle East developments. If the de-escalation continues and markets start to sense an earlier end to the conflict, then oil prices will start drifting lower again and will likely support risk assets like cryptocurrencies. Conversely, if the US-Iran talks break down and we see a re-escalation, we can expect crude oil to continue to erase the recent losses and weigh on general risk sentiment, ultimately putting pressure on Zcash.</p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;"> </p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;"> </p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 104%; font-size: 15px;">ZCASH TECHNICAL ANALYSIS – DAILY TIMEFRAME</p><p></p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">On the daily chart, we can see that <a href="https://www.tradingview.com/symbols/ZECUSD/" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">Zcash</a>has reached a new high this week as the first European ETP introduction increased the bullish momentum. If we get a pullback into the major trendline, we can expect the buyers to lean on it, with a defined risk below it, to keep pushing into new highs. The sellers, on the other hand, will want to see the price breaking lower to pile in for a drop into the 1,027 level next. </p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 104%; font-size: 15px;">ZCASH TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME</p><p></p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">On the 4 hour chart, we have a support zone around the 1,440 level. If the price get there, we can expect the buyers to step in with a defined risk below the support to position for a rally into new highs. The sellers, on the other hand, will look for a break to pile in for a drop into the major trendline around the 1,300 level next.</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 104%; font-size: 15px;">ZCASH TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME</p><p></p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">On the 1 hour chart, there’s not much we can add here as from a risk management perspective, the buyers will have a better risk to reward setup around the 1,440 support, while the sellers will look for a break to extend the drop into the major trendline.</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 104%; font-size: 15px;">UPCOMING CATALYSTS</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 103%; font-size: 15px;"><a href="https://investinglive.com/EconomicCalendar" rel="follow">Today</a>we have the Trump-Xi meeting and the US Jobless Claims data.</p> This article was written by Giuseppe Dellamotta at investinglive.com.