Reply To: Displace animated texture Z axis

[spikeyxxx]

No, true displacement doesn’t work in EEVEE (yet). 

If you want to use EEVEE, you could try this:

Connect the Displace Modifier to an Empty. Set the Displace Texture to your Image and use the Object Texture Coordinates with the Empty as the Object. Something like this:

Then you can animate the Empty.