ZEC has recently been on a strong run, dropping sharply by 22% in a short period. What exactly is happening behind this market movement?

**More than one issue**

First, there is news from the team. On January 8th, the core team of ZEC resigned collectively due to governance disputes, which indeed can undermine market confidence. Earlier, on January 5th, someone observed large funds secretly transferring into a major exchange, which is often a precursor to a sell-off.

However, from another perspective, not all is negative. On December 30th, Bitwise also submitted an application for a ZEC ETF, which was originally a significant positive signal. Unfortunately, the team's recent actions have basically shattered market expectations for this project.

**Price outlook**

Currently, two key levels need close attention:

- **$374**: This is the current main consolidation zone. If it breaks below this, there could be further downside.
- **$310**: This is a critical support line. If the price drops to this level, ZEC may face a very tough situation.

**How to operate**

If you still hold positions, you must hold tightly at the $374 level. Once it breaks, consider reducing your holdings—don't be too greedy.

If you want to buy the dip, wait and see. Re-enter around $310, and definitely keep a light position to test the waters—don't go all-in right away. This coin is very volatile now, with a high risk factor.

**Outlook**

Whether ZEC can turn around depends mainly on two things: first, whether the team can resolve internal disputes and reorganize; second, whether the ETF approval can finally go through. If either of these two things develops positively, there might still be a chance. But at this stage, the project is in a quite sensitive period, so keep a steady mindset.