• Zcash rallies for the second consecutive day, eyeing a breakout above $200.
• The Ethereum Foundation is committed to working with the ecosystem, emphasizing the importance of privacy protocols.
• Retail interest in ZEC skyrockets as the futures Open Interest hits $237 million on Thursday.

ZCash (ZEC) trends higher for two consecutive days, trading near $190 on Thursday, while most cryptocurrencies struggle amid headwinds as investors generally book profits. 

Interest in the privacy-focused token has also surged in tandem with the derivatives market, highlighting a significant increase in the futures Open Interest (OI). 

A breakout above the $200 mark could be anticipated in the coming sessions, especially if Zcash flips the short-term resistance at $190 into a support level.

ZCash breaks out as Ethereum Foundation reaffirms commitment to privacy 

In a world where almost everything happens on the internet, the Ethereum Foundation (EF) believes that “privacy is the freedom to choose what you share, when you share it, and who you share it with.” 

In a blog post highlighted by ZCash on X, the EF emphasized its commitment to privacy as a core part of building trust. 

“Privacy deserves to be a first-class property of the Ethereum ecosystem, and we are committed to working alongside the ecosystem to make that a reality for individuals and institutions alike,” the Ethereum Foundation stated.

ZCash is the second-largest privacy-oriented protocol, with a market capitalisation of $3.1 billion. According to CoinGecko, ZEC has pulled more than $840 million in trading volume over the past 24 hours, indicating the growing demand for the token. 

The futures Open Interest, referring to the notional value of outstanding futures contracts, surged, reaching $237 million on Thursday and underscoring increasing retail demand for ZEC. 

CoinGlass data shows that OI averaged $37 million on October 1, marking an 84% increase in less than ten days. A steady uptrend in the OI would mean that traders are increasingly piling into long positions, anticipating a sustained rally in the coming days.

ZEC/USDT daily chart

Technical outlook: Zcash bulls tighten grip

Zcash offers bullish signals at the time of writing on Thursday, reflecting growing retail interest and bullish momentum. Key indicators, including the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), support the short-term bullish outlook.

The RSI, currently rising at 72, indicates that bullish momentum is building. Similarly, investors would be inclined to increase risk exposure, if the MACD indicator maintains a buy signal with the blue line remaining above the red signal line.

ZEC/USDT daily chart

Bulls anticipate a breakout above the $200 level in upcoming sessions. However, traders should be cautiously optimistic to avoid sudden pullbacks, especially with the RSI in overbought territory. Still, dips could provide new entry opportunities, especially if demand for privacy tokens and positive sentiment prevail.