ZEC has once again become the focus of the market recently, not only because its price has returned to a key range, but also due to a relatively large short position. The current focus of the market is whether this token will be able to effectively break through its previous high of $1250, and whether this will further increase short pressure.

46.65 million US dollars in short positions draw attention

It is mentioned in the text that trader Garrett Jin has closed out his 1,332 long positions in BTC, which, based on the data provided in the text, are valued at approximately $105.4 million, resulting in a profit of about $2.7 million. Subsequently, he shifted his trading focus to taking short positions in ZEC.

Currently, this short position is said to hold 39,760 ZEC, with a nominal value of approximately $46.65 million and a liquidation price of around $2,540.28. Since this price level is significantly higher than the current discussion range, the market has begun to regard it as an important reference for observing subsequent fluctuations.

However, a single large short position does not necessarily mean that prices will rise rapidly. Even if the liquidation price is of concern, if ZEC lacks sustained buying interest, it may not rise directly to a higher range due to short pressure.

$1,250 remains a key level.

From a price structure perspective, $1250 remains the most important upper level. The article suggests that if ZEC clearly breaks through this previous high, prices may re-enter an upward phase in an area lacking historical trading density, and the target range discussed by the market will also move upwards accordingly.

In this scenario, $2,500 will shift from a hypothetical upper range to a price area that is more frequently discussed. At the same time, the aforementioned short liquidation price of $2,540.28 is located just above this integer level, making it easier for the market to use as a reference point.

• Upper key point: $1,250
• Short liquidation price: $2,540.28
• Support levels below: $740, $550

Regulatory pressures continue to dampen expectations for privacy coins

In addition to price factors, as a privacy coin, Zcash still faces practical obstacles at the regulatory level. The article cites documents submitted by Grayscale to the U.S. Securities and Exchange Commission, which state that ZEC has been taken off multiple trading platforms in the past few years or has faced the pressure to be taken off such platforms.

The trading platforms listed in the text include Coinbase UK, Bittrex, and OKX. It is also mentioned that Binance previously considered taking the token off the market due to privacy concerns. If regulated platforms continue to tighten their support for privacy coins, the liquidity and availability of ZEC may be affected as well.

This is also one of the core contradictions faced by Zcash: Privacy protection is its main selling point, but this same feature may also make it more difficult to gain widespread support in compliant markets.