Key Insights
- •A top analyst noted that Zcash cleared long liquidity after the November crash, driven by peak hype, creating conditions for a bounce rather than a trend reversal.
- •Eric Van Tassel warned that the ZEC price remained in a downtrend with low volume and no confirmation of reversal, advising traders to wait rather than chase short-term moves.
- •Multiple technical analysts identified the $280 to $360 zone as a critical support area where Zcash could attract buyers, with Fibonacci levels and historical ranges suggesting a bounce potential.
Market Dynamics and Trader Analysis
Trader Michaël van de Poppe shared analysis on December 2 explaining why Zcash failed to provide upward returns after the November peak, noting that the asset experienced something the market had not seen for a long time during the rally. The market was calling for higher prices during the peak, creating excessive hype that typically preceded corrections when long liquidity became overextended. Van de Poppe’s chart showed that the subsequent crash took out long liquidity, completing a necessary reset in positioning.
Additionally, the daily timeframe displayed a clear downtrend from the $740 highs reached in late November, with price action currently testing the $333 area where liquidity had accumulated.
A pink shaded zone between $480 and $520 marked potential resistance for shorts, while a green zone between $240 and $320 represented areas where longs or bounce plays made sense. The trader concluded there was a case for Zcash to bounce from its current region, but emphasized that this would not constitute a trend reversal. The distinction mattered because bounces offered shorter-term trading opportunities while trend reversals signaled longer-term position changes, and confusing the two often led traders to hold through renewed downside.
Zcash Price: Downtrend Ceiling Caps Rally Potential
Eric Van Tassel shared a detailed analysis on December 3, stressing the importance of confirming trends before committing capital to ZEC price moves. The overall trend had been down for quite some time, with volume remaining low and no real conviction of a reversal at the current point in the cycle. His chart displayed a yellow downtrend line acting as a ceiling for any rally attempts, showing that Zcash was trading at $337.79, well below the descending resistance that connected the peaks from late November through early December.
Van Tassel warned traders not to chase smaller moves like the current bounce, explaining that great investors waited for confirmation of a trend reversal, even if it meant entering at a higher price. He referenced Jessie Livermore’s strategy of waiting for confirmation before committing money, noting it was better to get in at a higher price after confirmation than to chase short-term moves and sit on losses if the market continued down.
Nobody knew how low Zcash might go, particularly after the massive parabolic run it had experienced while the rest of the market remained flat or down. Van Tassel pointed out that many traders, including himself, made tremendous profits on Zcash during that run and were now taking those profits to roll into other assets that had yet to move. This had nothing to do with the quality of Zcash as an asset but rather reflected how whales strategically moved money in and out of assets to maximize returns, with retail traders serving as secondary participants in the overall picture.
Fibonacci Support Suggests Bounce Zone for ZEC Price
Trader Budhil Vyas offered a more optimistic short-term view on December 3, highlighting that the ZEC price had reached the 0.618 Fibonacci retracement level around $330.97. His chart showed the three-day timeframe with Zcash trading at $340.30 after rebounding from lows near $300, with Fibonacci levels drawn from the entire rally that began in September. The 0.618 level at $305.48 and the 0.65 level at $282.77 marked technical support zones where price often found buyers, and the current bounce suggests those levels are holding as expected.
Vyas suggested it was “magic time again,” implying that Fibonacci support frequently produced bounces that traders could capture for short-term gains even if the broader trend remained uncertain. The three-day chart context showed that while Zcash remained well below the November highs, the asset had established a base above $300 that might support further recovery toward the $400 to $450 range before encountering the downtrend ceiling that Van Tassel had identified.
Zcash Green Box Marks Aggressive Buy Zone
Trader AltOnChain provided specific entry guidance on December 1, telling traders to keep their approach simple by watching for Zcash to enter a green box zone where spot buying should become aggressive. His daily chart highlighted a green-shaded area between approximately $280 and $360, representing the accumulation range where risk-reward favored buyers.
The chart showed that Zcash had already entered the lower portion of this green box, with price trading around $339.90 after the sharp decline from November highs above $700. AltOnChain’s message conveyed the confidence of someone who viewed this range as a high-probability bounce zone, based on historical support and the amount of liquidation already incurred. The implication was that traders who bought within this green box would likely see profits as Zcash bounced toward resistance levels. However, the analysis did not predict whether those bounces would lead to a sustained reversal or provide exit liquidity for those who bought at the lows.