Crypto News Today: Zcash Plunges Amid Governance Turmoil

Key TakeawaysZcash (ZEC) price drops over 20% to around $381 after ECC team resignationGovernance dispute at Bootstrap weighs on sentiment despite open-source continuityTechnical patterns point to $275–$300 as a key downside zoneZcash Price Drops After Core Team ExitZcash price slid more than 20% to $381, its weakest level in three weeks, after the entire core development team resigned from the Electric Coin Company (ECC).The sell-off followed confirmation that the team would form a new entity, citing unresolved governance disputes with nonprofit parent Bootstrap.Market reaction was swift. Despite reassurances that the Zcash network remains operational and secure, uncertainty around development coordination triggered renewed selling pressure.Governance Uncertainty Weighs on Market ConfidenceAt the center of the Zcash news is a dispute over nonprofit governance and legal constraints on external funding.Bootstrap stated it is exploring alternative structures for investment while ensuring compliance with U.S. nonprofit law.Former ECC CEO Josh Swihart described recent governance changes as a “constructive discharge.”No criminal allegations have been made, but the episode has weakened short-term confidence in the project’s direction.Technical Structure Signals Downside RiskFrom a chart perspective, ZEC recently broke below a key support confluence of a rising trendline and the 20-day EMA.Analysts now identify a descending channel and bear flag pattern, increasing odds of a move toward $275–$300.A decisive daily close above $561 would be required to invalidate the bearish structure.Until then, the Zcash forecast remains cautious.Outlook: Waiting For ClarityThe Zcash update highlights a market stuck between structural uncertainty and long-term potential.While the protocol remains permissionless and open source, near-term price action depends on governance clarity and renewed sentiment.For now, Zcash price is consolidating risk, not breaking down or breaking out.Traders are watching whether confidence returns or whether technical pressure forces a deeper reset.