Evaluating the Impact of Zcash's Recent Sell-off Following ECC's Departure

Zcash [ZEC] has recently experienced a significant drop in its price, primarily triggered by a governance dispute that led to the exit of the Electric Coin Company (ECC), one of the main development teams responsible for Zcash. This sell-off indicates immediate concern in the market, though ECC CEO Josh Steward has stated that the Zcash protocol remains unaffected.

Key Takeaways

Zcash faces price declines after the departure of the Electric Coin Company due to market panic, although protocol fundamentals remain resilient.
Long-term investors should watch support levels at $371 and $307, with a potential buying opportunity around $300.
Short-term bullish prospects for Zcash appear limited, and recent price trends suggest a focus on potential selling strategies.

Disclaimer: The information provided here is for informational purposes only and should not be considered financial, investment, trading, or any other type of advice. The views presented are solely those of the writer.

ZCash sell-off worsens following the recent developer team exit

Earlier reports from AMBCrypto highlighted that the privacy sector showed strong performance in Q4 2025, a trend that could persist into 2026. While this short-term volatility appears concerning, it may not necessarily erase the gains made since September.

Long-Term Analysis of Zcash's Price Movement

ZCash 1-day Chart

Source: ZEC/USDT on TradingView

The daily chart indicates a bearish internal structure for Zcash; however, its swing structure shows bullish potential. The upward movement from $187 to $750 serves as a basis for plotting Fibonacci retracement levels. To determine a long-term trend change, it's important for the lower end of this swing to be surpassed. For the time being, ZEC can be viewed as still experiencing a retracement phase.

Investors should keep an eye on support levels at $371 and $307. Recent data from the A/D and CMF indicators suggest heightened selling pressure, and the RSI has dropped below the neutral mark of 50, indicating a shift towards bearish momentum. As a result, a price decrease seems probable in the upcoming days and weeks.

For long-term holders of Zcash, a retest of $300 could present a potential buying opportunity; however, investors should have clear exit strategies for their bullish outlook.

Short-Term Outlook for Zcash

There may be a chance for prices to rebound from the $370-$400 demand zone, mirroring the movements seen in mid-December. Bitcoin [BTC] bulls are attempting to maintain control around the $90k level, and if they succeed, it could lead to short-term gains for ZEC, potentially pushing it back above $400.

At this moment, ZEC does not seem poised for short-term bullish momentum.

Recommendations for Traders – Consider Selling

ZCash 2-hour Chart

Source: ZEC/USDT on TradingView

Previously, the daily chart suggested that the $450 area had been tested, functioning as a supply zone. The 1-hour chart clarifies this movement further as a short-term relief rally and a re-test of a resistance zone, preceding a continued downtrend.

As of this writing, the local low around $381 appears to be under significant pressure and may be broken. The $371 level, which has been essential support over the last month, is crucial. A drop below this point could prompt traders to sell ZEC, with targets set at $345 and $307-$288.