Zcash Bears Take Control as ZEC Falls to $950 and $800 Becomes the Next Target

• ZEC dropped below $1,000, reaching a two-month low near $962.85.
• ETF outflows and $18 million in liquidations intensified bearish pressure.
• Breaking below $900 could expose Zcash to further losses toward $800.

ZEC has suffered another sharp setback after losing the psychological $1,000 level. The privacy-focused cryptocurrency recently touched a two-month low near $962.85. Selling pressure has intensified despite Grayscale's fresh commitment to support network development. Meanwhile, traders continue closing leveraged positions as bearish momentum strengthens. ZEC now faces another important test around $950. A deeper correction could expose $800 as the next major support zone.

https://twitter.com/Grayscale/status/2120171219802849361?a=Q70dqK-0vqP6q-9PJ58&s=19

ETF Outflows and Liquidations Put Zcash Under Pressure

ZEC traded near $979 on November 12, moving between $950 and $1,020. The token has lost more than 25% over the past week. Bitcoin, meanwhile, held relatively steady around $73,700. The decline followed Grayscale's November 10 announcement of a $1 million commitment. The asset manager pledged Zcash ETF sponsor fees toward ecosystem development.

Funding will support marketing, education, community initiatives and network projects. The commitment covers up to one year of ETF sponsor fees. Grayscale has already distributed $400,000 among four organizations. Recipients include the Zcash Foundation, Shielded Labs and Project Tachyon. Pretty Good Policy for Zcash also received an equal share. However, the pledge does not represent direct purchases of ZEC tokens.

ETF outflows have added another challenge for the cryptocurrency. SoSoValue recorded nearly $30 million in November outflows through November 11. October also recorded approximately $46.25 million in withdrawals. Derivatives activity paints an equally concerning picture. CoinGlass recorded nearly $18 million in ZEC liquidations within 24 hours. Long positions accounted for approximately 72% of those forced closures. Open interest remained near $2.12 billion.

Can Buyers Defend $900?

Technical indicators suggest sellers currently maintain control of the market. ZEC trades below the 20-day moving average near $1,206.82. The price also sits beneath the lower Bollinger Band around $1,005.11. The Bollinger Band Percentage reading of -323.08 highlights an unusually extended decline. Immediate support stands between $960 and $980. A breakdown could expose $900 before sellers target $800.

Trader Daan Crypto Trades identified a significant liquidation cluster between $800 and $900. The zone also aligns with previous consolidation and important technical indicators. Altcoin Sherpa similarly identified $800 to $900 as a potential bottoming area. However, recovery requires stronger buying pressure. ZEC must reclaim $1,005 before challenging resistance around $1,207.

A sustained move above these levels could improve market sentiment. Crypto Patel maintains a more cautious outlook. He suggested taking partial profits and protecting remaining positions with stop-loss orders. His $500 to $200 downside scenario represents a bearish possibility. Meanwhile, Zcash faces another important community development milestone. The next funding proposal window closes November 13.