ZEC Falls by 2.16% as Traders Adjust Short Positions During Market Fluctuations
- ZEC fell 2.16% to $352.42 on Dec 6, 2025, despite a 526.09% annual gain, highlighting its extreme volatility. - Hyperliquid's $14.1M ZEC short position, averaging $412 entry, shows shrinking profits as prices rise toward breakeven. - Broader bearish activity includes ETH and MON shorts with $6.22M and $2.26M unrealized gains, reflecting active market positioning. - Traders adjust exposure amid ZEC's 17.68% monthly drop and 2.43% weekly rise, signaling cautious strategy shifts in volatile crypto markets.
ZEC Price Movement and Market Volatility
On December 6, 2025, ZEC experienced a 2.16% drop over the previous day, closing at $352.42. Despite this short-term decline, the cryptocurrency has posted a 2.43% gain over the past week and an impressive 526.09% surge compared to the previous year. These figures highlight the asset's pronounced volatility, with significant price swings occurring in both the short and long term.
Major ZEC Short Position Approaches Average Entry
According to HyperInsight, a substantial short position in ZEC is currently held on the Hyperliquid platform, totaling $14.1 million—the largest ZEC exposure on the exchange. The average entry price for this position is now close to $412. Initially opened on October 10 at around $184, the position has been incrementally increased and rebalanced, pushing the average entry up to $419.
This short position has seen dramatic fluctuations, including a floating loss of $21 million on October 17. As ZEC's price has climbed, unrealized profits have shrunk from over $3.3 million to just $300,000. In the last hour alone, the short was increased by about $1.72 million, reflecting active adjustments as traders respond to the ongoing rally.
Shorting Trends Across the Market
The ZEC short is part of a wider bearish strategy on Hyperliquid, where traders also hold significant short positions in ETH, MON, and HYPE. The ETH short currently leads in unrealized profits, standing at $6.22 million (a 194% gain). Meanwhile, a leveraged MON short worth $5.72 million has generated $2.26 million in unrealized profits, demonstrating strong returns for that trade.
With ZEC's price rallying, the short position's proximity to its average entry price suggests that traders are carefully weighing whether to close or modify their positions. The narrowing window of unrealized profit indicates the position is approaching breakeven, which could prompt decisive moves in the near future.
Market Dynamics and Strategic Adjustments
These developments underscore the fast-paced nature of the cryptocurrency market, where traders must continually adapt their strategies in response to price volatility. The journey of the ZEC short—from steep losses in October to nearly breaking even in December—exemplifies the unpredictable environment that characterizes digital asset trading. Leverage amplifies both risks and rewards, making active management essential.
For both investors and analysts, the evolving ZEC short position offers a snapshot of prevailing market sentiment and tactical approaches during this cycle. Despite a 17.68% decline over the past month, ZEC’s overall upward momentum suggests that long-term optimism remains, even as some traders maintain bearish bets in the short term.
Activity on Hyperliquid demonstrates the critical role of vigilant position management in a swiftly changing market. As ZEC approaches its average entry price, the next day or two could be pivotal in determining whether this significant short position is closed out or further adjusted.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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