Analyzing how bad Zcash’s latest sell-off really is after ECC’s exit

Zcash [ZEC] has fallen dramatically on the price charts in recent days, following the governance clash that saw the Electric Coin Company (ECC) quit. This team was one of the key developers behind Zcash.The sell-off reflected immediate market panic. Even though according to EEC CEO Josh Steward, the Zcash protocol remained unaffected.AMBCrypto had previously reported that the privacy sector was a top-performing narrative in Q4 2025 – A trend that could continue in 2026. The aforementioned short-term volatility might not trigger the reset of the gains made since September.Assessing the long-term Zcash swing structureSource: ZEC/USDT on TradingViewWhile the 1-day chart revealed a bearish internal structure for the privacy token, the swing structure was bullish. The swing move from $187 to $750 was used to plot a set of Fibonacci retracement levels.The low of this swing move needs to be breached to indicate a long-term trend change. As things stand, investors can still consider ZEC to be within a retracement phase.The $371 and $307-levels would be the next support zones to watch. The A/D and CMF indicators showed that selling pressure has been high in recent days. The RSI also slipped below neutral 50 to indicate a bearish momentum shift.Hence, a price drop appeared likely in the coming days and weeks.For long-term Zcash investors, a retest of $300 could offer a buying opportunity. However, they will need to have clear invalidations for their bullish ideas.Arguing Zcash’s short-term bullish casePrices may rebound from the $370-$400 demand zone, as they did in mid-December. Bitcoin [BTC] bulls have been fighting for control of the $90k round-number level. A victory could spur short-term gains, and this could help ZEC climb back above $400.As things stand, ZEC is unlikely to see short-term bullishness.Traders’ call to action – SellSource: ZEC/USDT on TradingViewEarlier, the 1-day chart had revealed that the $450-area had been revisited on Friday as a supply zone. The 1-hour chart gave this move more clarity. It was a relief rally and a retest of a resistance zone before a sustained downtrend.At the time of writing, the local low at $381 was being challenged and was likely to be overcome. The $371-level, previously highlighted as a prominent support over the past month, will be a pivotal level. A drop below this level would mean traders should look to sell ZEC, targeting $345 and $307-$288 next.Final ThoughtsA price drop below $370, fueled by the recent turmoil and ZEC sentiment shift, may be likely.Long-term investors can look to buy at $300, the 78.6% Fibonacci retracement level, but must have clear strategies to exit in case of further losses.Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.