ZEC in a bearish formation: Head and shoulders pattern analysis for short traders

With ZEC trading around $328.87, the chart shows a clear technical setup suggesting a continuation of the downtrend. The formation corresponds to a classic distribution pattern where the shoulders define the resistance levels perfectly and the neckline provides the critical breakout point. This is the kind of scenario where disciplined patience creates opportunities.

Entry structure and operational risk management

The neckline break in this shoulder pattern opens the door for short positions in the 385–415 USDT zone. This range is not random: it coincides with the area where sellers previously took control (bearish FVG) and where the price tends to retest before continuing its decline. The trade is invalidated if the price closes above 455, which corresponds to the maximum of the right shoulder. If this happens, the bearish thesis loses validity and the position should be closed without hesitation.

Partial profit levels are designed according to liquidity depth in each demand zone:

• First target (T1): 320 USDT
• Second target (T2): 250 USDT
• Third target (T3): 180 USDT
• Extended target: 90–80 USDT, where significant structural demand exists

Why shoulder formation carries weight in this context

The shoulder pattern observed in ZEC is not a simple retracement; it confirms a regime change from accumulation (or in this case, distribution after the previous rise). The break of the neckline line represents the moment when sellers dominate the narrative and buyers lose conviction.

The crucial point here is that below the neckline, the structure lacks significant supports. There is clean liquidity down to the deepest demand pockets. This means the price can traverse multiple levels without major encounters, allowing this swing trade to evolve without violent interruptions.

Principles of execution: Time, not speed

This is not a scalp. The oscillation framework requires patience. The price may pause several times on its way to the targets, and that is completely normal. The recommendation is to take partial profits at each target to gradually reduce exposure, avoiding the temptation to chase all gains in a single move.

The fundamental premise here is that time is the cost factor in this trade, not direction. The direction is already clear in the shoulder structure. What determines success is discipline in waiting, patience during pauses, and clean execution at exit points. If the price remains closed above the invalidation zone, exit the position without questioning the structure. The structure indicates a downtrend. The technical analysis of shoulders confirms it. Discipline executes it.