An account with $25.7 million in short positions is currently trapped on the edge of life and death.

Today, the market reported that an account holding the largest ZEC short position on a decentralized derivatives platform has seen its floating loss expand to $1.4 million. This amount is roughly equivalent to three prime-location apartments in a major city, or a top-tier supercar—all evaporated just like that.

**Who exactly is this "whale"?**

According to on-chain data, this account had been continuously increasing its ZEC shorts, but didn’t expect the price to suddenly surge in the opposite direction. Under pressure, he has already closed part of his position at a loss to stop further damage. But here’s the key—he’s still holding $25.7 million worth of shorts that remain untouched, with a liquidation price set at $886, still a considerable distance from the current price.

In other words, this guy hasn’t hit rock bottom yet.

What’s even more interesting is that this same account has made hefty profits from short positions in ETH and MON. So, this isn’t a newbie messing around—he simply misjudged ZEC for the moment. For other market participants, this serves as both a warning and a potential opportunity—if he’s forced to massively close his shorts, the resulting buy orders could instantly drive the price up.

**What signals are hidden in the price movement?**

Looking at the one-hour chart, the current price of ZEC is fluctuating around $396. There’s strong resistance at $420 above, support at $370 below, and a deeper defense line at $320 further down.

In terms of trend, it’s still generally downward. However, technical indicators show a bit of a “contradiction”: the MACD has just formed a bullish crossover above the zero line, suggesting a possible short-term rebound.

My judgment is: in the next few trading sessions, there’s a possibility the price will test $420. But if it fails to break out with volume and hold above, it’s likely just a bull trap, and then it’ll reverse to test $370. As for an immediate breakdown to $320? That’s unlikely tonight unless there’s some major unexpected bad news.

**What should retail investors do?**

Honestly, now is not the time to get carried away. A trapped whale could indeed become “short squeeze fuel,” but it could also be the last struggle before a trend reversal. The $370–$420 range is the current battlefield, and the breakout direction will determine the short-term trend.

If you’re already holding a position, $420 is a key level to watch; if you haven’t entered yet, it’s not too late to wait for a clear direction before acting. There are always opportunities in the market, but you only have one principal.