ATTiny84 blink mystery Novice mode, please.

I programmed my ATTiny84 using Arduino Ethernet (Arduino IDE 1.6.7) using https://github.com/damellis/attiny branch - 1 MHz internal oscillator mode. I uploaded ISP sketch to Arduino with all cables disconnected (first I did it with all of them connected but Arduino didn't seem to mind), connected the whole setup using 10 uF capacitor and the sketch got sent into ATTiny84 without problems.

Blink sketch is using atttiny84's digital pin 7 (that is physical leg No. 6) set to 1 s blink rate.

But, when I connect an yellow LED, it won't blink. I'm not yet good enough with my oscilloscope (don't know how to hook it up) but my multimeter is showing something weird - voltage is slowly rising on DP7 (I measured against ground) - over approx. 5-6 seconds to 400 mV, then immediately jumps to 1V (not sure about this, could be measurement bug) and then right to 0V. 

Blink sketch:

int led = 7;

// the setup routine runs once when you press reset:
void setup() {                
  // initialize the digital pin as an output.
  pinMode(led, OUTPUT);     
}

// the loop routine runs over and over again forever:
void loop() {
  digitalWrite(led, HIGH);   // turn the LED on (HIGH is the voltage level)
  delay(1000);               // wait for a second
  digitalWrite(led, LOW);    // turn the LED off by making the voltage LOW
  delay(1000);               // wait for a second
}


I'm clueless. Please confer. 
Thank you.

Images of my setup:
I solved my own problem. Wiring was completely OK, so was flashing. 

The problem was RESET pin (4th physical pin). As soon as I disconnected it after flashing, LED started blinking. If someone knows why, I'd appreciate some info.