ZEC Drops 2.16% Amid Short Position Adjustments and Market Volatility

On December 6, 2025, ZEC recorded a 2.16% decline within the previous 24 hours, settling at $352.42. Despite the recent dip, the asset has seen a 2.43% weekly increase and a 526.09% rise over the past year. These movements underscore the coin's continued volatility, with sharp fluctuations observed across both short- and long-term timeframes.

Short Position Near Average Entry Amid ZEC Rally

HyperInsight data highlights a significant ZEC short position held on Hyperliquid, reaching $14.1 million. This represents the platform’s largest exposure to ZEC, with the position’s average entry price now near $412. The short was initially opened on October 10 at a much lower price of around $184, and subsequent additions were made to balance and adjust the position, ultimately raising the average to $419.

The ZEC short has experienced notable swings, including a floating loss of $21 million on October 17. However, unrealized profits have since contracted from over $3.3 million to $300,000 as the price has continued to rise. Over the past hour, the short position increased by approximately $1.72 million, signaling active management as traders attempt to adjust their exposure amid the ongoing rally.

ZEC Shorting Activity in Broader Context

The ZEC short is part of a broader set of bearish positions on Hyperliquid, with significant exposure also held in ETH, MON, and HYPE. The largest unrealized profit currently comes from the ETH short, which sits at $6.22 million or 194%. In addition, a leveraged MON short of $5.72 million shows unrealized profits of $2.26 million, indicating strong performance in that position.

As ZEC continues to rally, the proximity of the ZEC short to its average entry price suggests traders are cautiously evaluating whether to exit or adjust their positions. The shrinking unrealized profit window indicates that the position is nearing a breakeven point, which may prompt further action from the trader in the near term.

Market Implications and Position Management

The data reflects a dynamic market environment where traders are actively managing their positions in response to price changes. The ZEC short’s evolution—from large losses in October to a near-breakeven status in December—illustrates the intense volatility that defines the cryptocurrency markets. Traders are closely watching price trends and adjusting their strategies accordingly, particularly in a market where leverage can amplify both gains and losses.

For investors and market observers, the ZEC short position serves as a microcosm of broader sentiment and strategy in the current market cycle. The continued rise in ZEC’s price, despite a 17.68% drop over the past month, indicates that long-term bullish expectations remain strong, even as near-term bearish positioning persists.

The unfolding activity on Hyperliquid highlights the importance of active position management in a rapidly changing market. As ZEC moves toward its average entry price, the next 24 to 48 hours may provide critical insight into whether this large short position will be closed or further adjusted.